Crypto Tax Reporting App Binocs Nets $4M Funding Round As It...| MENAFN.COM

Sunday, 25 September 2022 04:17 GMT

Crypto Tax Reporting App Binocs Nets $4M Funding Round As It Adds Institutional Investors To Retail Base


(MENAFN- News Direct)

Bangalore, India | September 22, 2022 07:00 AM Eastern Daylight Time

Over 300 million people around the world have crypto assets in their investment portfolio, a number that is set to double by 2025. Helping them stay on top of their regulatory responsibilities, crypto tax reporting app Binocs is today announcing a $4M fundraise. With this new funding round, they plan to cater to institutional crypto investors and enter geographies like the US, UK, Australia etc. The seed funding round was led by BEENEXT and Arkam with participation from Accel, Saison Capital, Premji Invest, Blume and Better Capital.




Crypto tax reporting app Binocs on desktop and app

Founded in May 2022 by Tonmoy Shingal and Pankaj Garg, Binocs help retail crypto investors there to adapt and evolve to the ever-changing dynamics of the crypto market by simplifying their accounting, taxation, compliances and helping them stay on top of their portfolios. The app is able to compute crypto taxes in less than 30 minutes and already has over 1,000 active users. Binocs also offers the portfolio tracking features wherein users can get an overview for their entire distributed crypto portfolio which offers a consolidated report on ROI, P&L, capital gains across all exchanges. This includes a wide range of cryptocurrencies, tokens, protocols, and smart contracts.

Co-Founder and CEO Tonmoy Shingal commented:“Compliance related to crypto trades and investments can be tricky, error-prone and time-consuming. Binocs is mitigating these pain points for retail users and institutions to have a seamless crypto experience. Moreover, the lack of information around crypto tax regulations is a hurdle to investing in the asset class. Using state-of-the-art technology, we ease the crypto taxation journey of our users. In essence Crypto is a web3 currency but has to comply with a web2 world of accounting principles and compliance. We are bridging this gap. Our software is compliant with the latest regulations, ensuring our users can calculate their taxes efficiently.”




Binocs founders: Tonmoy Shingal and Pankaj Garg

The total market cap of the crypto industry has risen sharply from ~325B US$ in Sep 2020 to ~1T US$ in Sep 2022 . Assuming equal split between short term and long term capital gains in the numbers above and a blended tax rate of ~20% the overall tax liability it imposes on the investors is of the tune of ~70B US$. By 2026 this tax outlay corpus can become of the order of 300B US$ ( assuming 20% user growth and 15% asset price growth annually). The portfolio aggregation and understanding technology can be expanded to include new use cases in future like building financial identity for retail users to forensics and risk management for institutional investors etc. The market is huge and is rapidly growing.

The primary purpose of Binocs is to ensure accurate tax computation is executed while maintaining compliance with the latest local laws and regulations for all its users. Binocs caters to an array of transactions right from Buy / Sell trades, Staking, P2P transactions, Airdrops and even transactions across wallets. They have recently launched features to track complex trades like Derivatives, Lending & Borrowing across CeFi and DeFi (like AAVE-v2 and more) platforms which sets them apart from the rest. With complete transparency, the algorithm breaks down the transaction fee and TDS already paid on the transactions and then calculates tax on the net amount.

Users can link their crypto portfolios via multiple sources centralised exchanges, decentralised exchanges, wallets, and on chains directly. They can track daily portfolio movements and portfolio value (enabled by intelligent analytics), as well as download quarterly and annual tax computation and account statements. Binocs also reconciles transactions, since inception, from multiple accounts with zero errors. Binocs is tax compliant in the US, UK, Australia, South Africa, India. Other major markets will be added in the coming month.

This funding round will help Binocs to launch in countries where tax regulations are defined and expand the team. Anirudh Garg, Investor at BEENEXT, commented:“As the Web3 world grows, crypto native organisations will need solutions like Binocs to help them with their compliances, accounting and bookkeeping. 20 countries currently have tax regulations and compliances in place for cryptocurrency and there are another 50 that will implement such policies in the near future. This is a great market opportunity to build an easy-to-use, yet powerful, system early on.”

 

About Binocs

Binocs is a venture-backed startup in the crypto space. It has built the latest compliance (accounting and taxes) and portfolio tracking software for crypto transactions for retail and institutional investors. The Binocs team comprises people from software engineering and corporate backgrounds at companies like Google, Amex, GE Finance, Yodlee, The Big Four companies, JP Morgan, and Goldman Sachs. Binocs uses OAuth Integration systems that provide state-of-the-art security and protect all its users' data.

 

Binocs is backed by VC investors including: BEENEXT, Arkam, Accel, Saison Capital, Premji Invest, Blume and Better Capital. For more information, please visit

 

About BEENEXT

BEENEXT is a Venture Capital fund managed by serial entrepreneurs that focuses on assisting founders with their operational experience, network, trust, unique perspectives, and capital. The team invests in early-stage tech start-ups that are focused on building the new digital platforms driven by the data network. BEENEXT is a platform of founders, by the founders and for the founders across the globe, primarily in South East Asia, India and Japan. Since its establishment in 2015, the team has invested in over 200 companies globally. For more information, please visit About Arkam

Arkam is an early stage multi sector technology investor. We invest in audacious entrepreneurs with groundbreaking ideas for a better India. We back digital category creators targeting the Middle India consumer as well as digital enablers (SaaS) focused on small businesses and enterprises.

 

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