The Indian cryptocurrency tax service has experienced unprecedented growth.

Catax anticipates a net revenue of around $322,000 (equivalent to Rs 2.5 Crore) for the fiscal year 2023. Gaurav Mehta, CEO and founder of Catax – Simple Crypto Taxes, indicated a projected gross revenue of nearly $322,000. The crypto tax service expects to serve between 1200 and 1600 customers.

Gaurav Mehta shared in a public address that by the conclusion of FY23, they hope to expand their user base to 300,000. He added that they are aiming for a 200% increase in net revenue in the coming years.

Catax maintains an impressive profit margin of 80% of net revenue and has reported a gross loss of $20,000 for the fiscal year 2022.

An overview of Catax – Simple Crypto Taxes reveals their financial status.

So far, Catax has not sought equity capital and proudly claims to operate on a bootstrapped basis. Mr. Mehta noted that they have engaged in discussions with several venture capitalists but have opted to delay any fundraising due to current market volatility. Additionally, they spent $20,000 over the last three months on product development and operational expenses.

In addition to serving B2B clients, Catax provides consulting services for individuals, businesses, and government agencies. Mr. Mehta mentioned that their primary target market for B2B services includes chartered accountants who handle cryptocurrency tax matters. The company licenses its services to these professionals for around Rs 10,000 (approximately $129) per year.

Currently, Catax is focused on developing solutions for government employees in the B2G sector. Their ambition is to become a go-to service provider for tax solutions that aid individual consumers with cryptocurrency tax audits.

Their business model allows for free services for users with fewer than 100 transactions. For those with transactions ranging from 100 to 10,000, a fee of Rs 2,000 is charged, and for more than 10,000 transactions, the fee increases to Rs 5,000.

Recently, the company has seen a revenue surge of approximately 60-70% over the past few months. Mr. Mehta attributes this success to their marketing approach, which emphasizes user education.

Mr. Mehta stated, \"We aim to assist our clients in understanding the intricacies of cryptocurrency taxes and navigating the complexities of governmental regulations surrounding them.\" He indicated that the company allocates between $3,000 and $5,000 monthly for marketing and acquiring new customers.

With projections suggesting they may reach 300,000 users by the fiscal year 2023's end, Catax is proactively establishing strategic partnerships with other companies in the cryptocurrency tax arena. They have already connected with Decrypt, Proton, and Prosper, primarily to utilize APIs, offer corporate enterprise options, and gain entry into decentralized finance (DeFi).

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