Munich-based AI tax and accounting startup Skalar has raised $12 million in combined pre-seed and seed funding, led by Accel with participation from HV Capital, UVC Partners, and others.
The company was founded by Timo Muell, who previously sold his startup Billfront to Klarna for $125 million. Skalar is building an AI-native platform to modernize tax and accounting from scratch for German Mittelstand companies.
Skalar targets the 3.5 million businesses in Germany that still rely on traditional tax advisors. The startup claims its AI can automate 70 to 80 percent of routine accounting tasks, allowing tax professionals to focus on higher-value advisory work. The company says it has already signed up hundreds of business customers.
The fresh capital will be used to expand the engineering team and accelerate product development. Skalar plans to grow from its current 12 employees to around 50 within the next year. The German tax software market, dominated by legacy providers, represents a significant opportunity for AI-native disruption.
