Israeli fintech company Way2Vat Ltd. is now a publicly traded company, having held its IPO on the Australian Securities Exchange. The company issued 35 million shares at $0.20c per share for an implied market capitalization of AU $30.7 million ($22 million US). Way2VAT raised AU $7 million ($5 million US) from the IPO.
Way2Vat stock rose as much as 57% in its first day of trading, but settled down to a 35% gain at AU$0.27.
Founded in 2016 by CEO Amos Simantov and based in Herzliya, Way2Vat is the developer and operator of an automated, AI-based platform for filing value added tax (VAT) returns. The platform connects to the customer’s exiting expenses management system, analyzes the reclaimable VAT amounts, and automatically files a refund claim with the relevant tax authority, thus, according to the company, rendering the manual process of filing VAT claims unnecessary.
Way2VAT boasts more than 180 customers, including Mastercard, EY Israel, Intel, and Amdocs. Last year, the company also launched a solution for small and mid-size businesses.
Way2VAT owns and operates a patented artificial intelligence technology that powers a fully automated, end-to-end VAT reclaim platform. Way2VAT does this by connecting to a business’ existing expense management system via an API, analyses recoverable VAT, then automates the reclaim process and submits it to the relevant tax authority, taking away the manual labor intensive aspect of having to lodge VAT claims.
Way2VAT Founder and CEO, Amos Simantov said, “The Listing on the ASX is a major milestone for the Company and positions us to accelerate our plans for growth in global markets. By providing integrated VAT claim and return solutions in 40 countries and over 20 languages, serving hundreds of enterprise businesses worldwide, Way2VAT is playing a leading role in the global shift to digital taxation systems and will support and streamline many of the antiquated systems that still exist for VAT collection.”
“The IPO has been a great achievement and we are committed to utilizing the funds raised to strengthen our product, team and strategy whilst maximizing shareholder returns. We welcome new investors and look forward to updating them as we continue on our growth journey.”
Way2VAT operates two products: dealing directly with enterprises, through which it enjoys a customer retention rate of 97%; and a small and medium business VAT/GST reclaim hub through global accounting firm technology platforms such as Xero, Sage, SAP and Oracle Netsuite.