HiPajak: AI-Powered Tax Assistant for Indonesia | Chat with CEO & Founder Tracy Tardia | Episode 49

Introduction

In this episode of The Clueless Capitalist, hosts Razi and Osman sit down with Tracy Tardia, the founder and CEO of HiPajak, an AI-powered tax assistant tailored for Indonesians. As the Indonesian government seeks to increase the tax rates significantly by 2027, HiPajak aims to simplify tax compliance for millions of taxpayers in the country.

The HiPajak Pitch

HiPajak operates as an AI tax assistant, primarily targeting Indonesian taxpayers. With current tax rates around 10%, there’s a looming plan to increase it to 23% by 2027, aiming for an estimated tax revenue of $ 20 billion. The integration of national ID and tax ID will enhance governmental monitoring systems, ensuring compliance. However, the existing self-assessment tax system poses challenges for taxpayers, especially given the limited number of certified tax consultants (about 6,000) serving approximately 15 million taxpayers.

Tracy outlines the complexity of tax management in Indonesia, which often involves manual and tedious processes for handling invoices and other tax-related documents. HiPajak significantly boosts efficiency; it automates approximately 95% of tax filing processes. Users simply upload their financial documents, such as invoices and bank statements, to the HiPajak platform, which then takes care of tax filing automatically.

Currently, HiPajak reports a monthly revenue of $ 77,000, reflecting a growth rate of nearly three times when compared to the previous year. The company’s customer acquisition cost (CAC) is $ 55, while revenue per customer per month can range between $ 250 to $ 300. With a remarkable retention rate of 97% and a lifetime value (LTV) of $ 11,000, HiPajak is well-positioned in the market.

Business Model

HiPajak has a dual business model: a subscription-based tax consultancy service and a referral fee from financial services. Subscription fees can reach up to $ 10,000 a year, with the company also securing a 3% fee from transactions associated with their partnerships.

The Origin Story

Tracy’s passion for taxation started in university, leading her to work in finance and subsequently helping a family business navigate complex tax issues. These experiences highlighted the need for automation in tax processes. She partnered with Sukma, a family friend with extensive technology experience, to co-found HiPajak.

Market Context

Tracy explained that while many individuals would prefer to avoid taxes, recent government actions, including stringent enforcement and integration of tax IDs, have increased compliance. This demand for easier tax solutions is what drives HiPajak. Customers either seek HiPajak through word of mouth or digital marketing efforts, with plans to further collaborate with financial institutions for customer acquisition.

Competition and Growth

Tracy clarified that while HiPajak faces indirect competition from traditional tax consultants and tax software firms, it differentiates itself by combining automation with consultation, catering to the needs of tech-savvy and less-informed taxpayers alike. The goal is to deploy more comprehensive marketing strategies after enhancing product automation.

As of now, HiPajak is raising $ 500,000 to further build their product and expand sales efforts, having already secured 50% of their target. They are focusing on attracting investors who can provide expertise in marketing, technology, and tax.

Tracy also addressed the risks involved, particularly regarding regulatory changes that could affect their operations.

The episode concludes with Tracy sharing insights on HiPajak’s growing customer base and ongoing efforts to maintain compliance in the fast-evolving tax landscape in Indonesia.

Keywords

• HiPajak
• Tracy Tardia
• AI Tax Assistant
• Indonesia
• Tax Compliance
• Self-Assessment Tax System
• Subscription Model
• Customer Acquisition Cost (CAC)
• Revenue Growth
• Market Demand
• Financial Services Partnership

FAQ

1. What is HiPajak?
HiPajak is an AI-powered tax assistant designed to simplify the tax filing process for Indonesian taxpayers.

2. Who is the founder of HiPajak?
The founder and CEO of HiPajak is Tracy Tardia.

3. How does HiPajak improve tax efficiency?
HiPajak automates approximately 95% of the tax filing process, allowing users to simply upload necessary financial documents for automated tax filing.

4. What is the pricing model for HiPajak?
HiPajak operates on a subscription model, with fees reaching up to $ 10,000 per year, and also earns a 3% referral fee from financial service transactions.

5. What are HiPajak's current revenue metrics?
HiPajak reports a monthly revenue of $ 77,000, and they have a customer acquisition cost (CAC) of $ 55, with customer revenue averaging between $ 250 to $ 300 monthly.