South Africa’s pioneering digital tax platform TaxTim has been acquired by a private consortium led by Twofold Capital, alongside Stellenbosch-based technology firm Octoco.
Founded in 2011, TaxTim is integrated with the South African Revenue Service (SARS) and has processed more than ZAR700 million (US$40 million) in tax refunds for hundreds of thousands of South Africans.
Co-founder Evan Robinson, who will remain with the company to drive product strategy, hailed the deal as “a new injection of energy, expertise and capital” that will take TaxTim “to the next level.”
The TaxTim’s Journey
Launched over a decade ago, TaxTim was built with a simple mission: to make tax filing less intimidating for South Africans. Over the years, it has grown into a trusted brand and has become a go-to solution for individuals navigating the complexities of tax obligations.
By providing tax education resources and breaking down technical jargon into everyday language, the platform has lowered barriers for taxpayers in a country where tax compliance is often seen as daunting.
What TaxTim Does
At its core, TaxTim acts as a digital tax assistant. Instead of filling out lengthy and often confusing forms, users are guided through a step-by-step process where they answer straightforward questions about their income, expenses, and deductions.
The platform then prepares and submits the tax returns directly to SARS. This model has helped democratize access to tax compliance, particularly for younger professionals and small business owners who might otherwise avoid engaging with the system.
About the Consortium
The acquisition was spearheaded by Twofold Capital, a private equity firm focused on scaling businesses with proven track records, in collaboration with Octoco, a Stellenbosch-based technology group known for building digital products across industries.
While the financial details remain undisclosed, the deal marks a successful exit for TaxTim’s non-operational shareholders and a partial exit for co-founder Robinson.
Consortium’s Founding and Funding Capacity
Twofold Capital has built a reputation in South Africa for supporting technology-driven companies with the potential to transform traditional industries.
Its director, Ed du Plessis, emphasized TaxTim’s strong positioning:
“TaxTim has built a trusted brand, a loyal user base and a track record of solving real customer problems in a market where simplicity and trust matter most.”
With Octoco joining the consortium, the group brings additional technical expertise and development capacity that will likely play a key role in expanding the platform’s offerings.
Impact of New Acquisition on the Market
The deal showcases a consolidation in South Africa’s digital finance sector, particularly at a time when fintech and AI-driven solutions are reshaping how ordinary citizens interact with money and government services.
With advances in artificial intelligence, Twofold and Octoco plan to enhance TaxTim’s core product, potentially introducing more personalized and automated tax services.
Such innovation could set new benchmarks for digital tax filing in Africa, positioning TaxTim not just as a national tool, but as a model for emerging markets with similar tax compliance challenges.
Why It Matters
Tax compliance remains a critical issue in South Africa, where SARS collected over ZAR1.74 trillion (US$96 billion) in tax revenue in 2023, but continues to battle challenges of compliance and accessibility.
Tools like TaxTim play a crucial role in simplifying this process for ordinary citizens while also boosting national revenue collection.
For South Africans, the acquisition represents both continuity and evolution: continuity in the sense that Robinson remains at the helm of product development, and evolution as new investors bring fresh capital, expertise, and technology to broaden the platform’s reach.
As Robinson noted: “It’s an honour to continue our original mission, making tax easy and accessible for all South Africans. I’m confident that with the support of Twofold and Octoco, we can build on what we’ve started and take TaxTim to the next level.”
