French startup Indy recently concluded a new funding round, raising $44 million (€40 million) with BlackFin Capital Partners leading the round. Indy initially started as an automated accounting platform for freelancers and self-employed individuals.
The company has since expanded its product offering to become an all-in-one platform for freelancers, encompassing accounting, company creation, tax preparation, invoicing, and soon, business banking. This demonstrates the advantages of bundling in a software-as-a-service company and serves as inspiration for entrepreneurs addressing fragmented markets.
Targeted at freelancers, self-employed individuals, as well as professionals like doctors, architects, and lawyers, Indy aims to provide all the administrative and financial tools necessary for running a business without employees.
Additional investors in the recent funding round include La Maison and iXO, and while the startup didn’t disclose its valuation, it has indicated a higher valuation compared to its previous €35 million funding round.
Indy’s primary feature remains its automated accounting functionality, allowing users to sync their bank accounts to automatically fetch past and future transactions. The platform also categorizes transactions and facilitates receipt management, VAT detection, and archiving for potential tax audits.
At year-end, Indy can pre-fill tax forms and submit them directly to the corporate tax administration, in addition to managing VAT returns. While the accounting tools are free to use, a monthly subscription is required for generating and submitting tax forms, providing a cost-effective alternative to hiring an accountant.
“We are on average four to five times cheaper than a chartered accountant for the tax preparation part, so many people are using our free services and will also subscribe to our paid services. But it’s up to them, they can also decide to hire an accountant,” stated Indy co-founder and CEO Côme Fouques.
Product Bundling Strategy
With its straightforward product positioning, Indy has successfully garnered tens of thousands of paid subscribers and continues to expand its product suite. The platform now supports quote and invoice creation, emphasizing its role in simplifying the billing process for users.
Moreover, Indy offers company creation services for free with a subscription, providing guidance on the necessary paperwork, thereby enhancing product stickiness and influencing user recommendations.
Looking ahead, Indy plans to evolve into a fintech startup, introducing a free business bank account with a payment card to streamline business finances for its current customer base.
By bundling essential services and leveraging economies of scale, Indy aims to provide a range of services free of charge, while maintaining a sustainable and scalable business model.
While Indy maintains its focus on the French market with millions of self-employed individuals, the company is also exploring expansion opportunities in other European countries, capitalizing on the substantial market potential and its effective distribution strategy.