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Monday, May 29, 2023

Swedish fintech startup collects $400K in pre-seed round to make crypto taxes easier

Stockholm-based startup Divly has secured $400K in a pre-seed funding round from DHS Venture Partners, Greens Ventures and YEoS Ventures. The startup helps people track and declare their cryptocurrency taxes. Divly’s latest funding round has set the stage for an expansion, as the company prepares to spread its wings and soar into new markets across the globe, beckoning forth a wave of investors eager to join in on the journey towards prosperity.

Divly was founded in January 2021 by Carl Gärdsell & Ruben Rehn in Sweden, after they experienced firsthand the difficulties of managing crypto taxes. They saw a need for a more cost-effective solution that was accessible to the average crypto user, rather than just catering to the US market, requiring manual input or expensive hourly rates from tax lawyers.

Fewer than one percent of investors globally who buy cryptocurrencies pay tax on their crypto investments, despite being required to do so by law. Tech company Divly makes it possible to manage the declaration of cryptocurrencies in a few clicks.

“We see a big problem in declaring crypto and are convinced our product will make it easier. Determining what you must declare for each transaction can be overwhelming and time-consuming. If you are not an accountant, tax lawyer, or programmer and have many transactions, you have little chance of doing this manually yourself,” says Carl Gärdsell, founder of Divly.

Since March 2022, Divly has partnered with Coinmotion, the largest Finnish virtual currency service provider, and Safello, the largest crypto broker in Sweden, with about 300,000 users. Divly has also started collaborations with several international players in the past year, such as BYDFi and Coingecko.

The crypto market has had a tumultuous year. Despite this, Divly continues to grow partly because it has expanded its service internationally to all Nordic countries, the Netherlands, Japan, and Germany. But above all, it’s the simplicity and the desire to make crypto tax declarations accessible to all investors that have driven Divly’s growth. With its recent successful funding round, Divly is poised to continue its growth and expand its reach to more investors worldwide.

The introduction of MiCA and the DAC8 proposal will result in tighter cryptocurrency regulations. As a result, authorities will have increased awareness of cryptocurrencies. One of the main requirements of the new rules is that cryptocurrency exchanges with users in the European Union must share their client information with tax authorities by January 2026.

“Procedures and processes for authorities to deal with tax issues will become increasingly important. Transactions on the blockchain are not anonymous; they are pseudonymous. This means that we could soon see a situation where those who have not paid taxes need to start backtracking and accounting for their transactions. I think most people want to do the right thing but don’t know how to do it. It should be easy to do the right thing, which we make possible,” says Carl Gärdsell.

Nurcin Metingil
Nurcin Metingil
A permanent student, a passionate first reader and nowadays doing master’s degree in Publishing Management. Beside these, I am up for games! I have been playing games since I was 6. Now, I am whispering "Business. Business. Numbers. Is this working?"

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