24.2 C
Monday, August 15, 2022

Eurora raises one of the largest Estonian Series A rounds

Tallinn-based startup Eurora has raised one of the largest Series A round in Estonia. The company closed 40 million dollars in the oversubscribed round led by Connected Capital, a venture capital firm that supports B2B SaaS companies to scale and grow. Seed stage-focused Baltic VC firm Change Ventures and pan-Baltic private equity investment management firm Equity United also joined the round alongside Marko Lastik, Founder of Eurora. This funding will pave the way for its growth to build the future of cross-border trade compliance. The company is expecting to explore new promising markets and develop new products.

Eurora Solutions raises $40M in Series A to tackle e-commerce shipping delays caused by EU regulation changes

Eurora Solutions, an Artificial Intelligence/Machine Learning-backed (AI/ML) cross-border e-commerce compliance platform, is announcing the closure of its oversubscribed Series A round, raising $40 million/£31 million. Amsterdam based Connected Capital led the round, with existing investors, including Change Ventures, Equity United and Eurora’s founder Marko Lastik also participating.

Eurora already has over 200 paying clients worldwide, including some of the biggest e-commerce players in Asia, such as JD.com, Yanwen and Topyou. These three companies alone process around billion parcels per year and deliver to more than 120 countries. The new funding will be used for geographical expansion in the UK, the US, and the Middle East, where rapid and high growth in the sector is expected, and product development and potential add-on acquisitions. In the past decade, global parcel shipping volume has tripled, and by 2026, this market is expected to reach over 260 billion parcels delivered.

In July last year, the EU ended the €22 import VAT exemption, and new trading regulations between the EU and the rest of the world gradually came into effect. This was intended to create a level playing field with local European manufacturers and retailers. Complying with this new regulation in the high volume, low value-per-package e-commerce market has been a challenge for merchants and logistics operators from the UK, the US, China and the rest of the world. These players are looking for software-based solutions that can help handle the billions of cross-border packages affected by this new EU regulation. Solutions with a high degree of accuracy, speed and at a low cost per package are required.

Eurora’s proprietary AI/ML-based platform automates tax, compliance and customs services. It assigns e-commerce products an appropriate HS code*, calculates the applicable VAT and duty amounts, and automatically creates electronic declarations for EU duties and taxes via simple API integration. The platform delivers more than 96% accuracy for e-commerce packages despite often patchy input data and it operates at a fraction of the time and price of hybrid or manual code allocation solutions commonly used today. Eurora was the first official VAT Intermediary and the first company to issue an IOSS number*.

The B2B platform can be used by online sellers, marketplaces, logistics and postal companies, as well as tax and customs authorities. Eurora’s compliance platform can automatically process 5,000 requests per second with up to 96% accuracy, the highest level of accuracy, speed, and automation available on the market. Marko Lastik has over 30 years of experience in logistics and is the founder and visionary of the platform, having created it together with 22 scientists from the world’s top 1% of universities, such as Tallinn University of Technology, StatLab (a spinoff company of the University of Tartu) and Software Technology and Applications Competence Centre in Estonia.

Eurora, Marko LastikMarko Lastik, founder and CEO, Eurora Solutions, said: “The number of different declarations, codes, reports, records and tax calculations required in the international shipping business is ever increasing. Without the correct data sets and automated solutions for tax calculations and electronic declarations, cross-border trade has slowed down, resulting in severe delays, fines, increasing costs and loss of customers.

By using Eurora’s platform, merchants can make deliveries faster and at lower costs, which results in increased customer satisfaction and trust.”

Eurora, Connected Capital, Shaffy Röell Shaffy Roell, investment manager, Connected Capital, added: “We have seen a clear push from regulators to improve transparency and reporting for the increasing number of goods that enter through customs. Eurora has built a platform which is significantly improving compliance while reducing package delays and lowering costs for e-commerce parcels shipped into Europe.”

Click here to read more funding news.

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?"

Related News

Stay Connected


Latest News