Eurora Solutions, an Estonian artificial intelligence company, has raised $40 million in funding to combat e-commerce shipping delays caused by changes in European Union regulations.
The company, calling itself “a cross-border e-commerce compliance platform powered by artificial intelligence and machine learning,” said in a statement that it already has 300 paying customers globally. Now it plans to use the new funding for its expansion into the UK, US and the Middle East.
According to the company, in July 2021 the European Union ended the €22 import value added tax exemption – the VAT is now levied on all imported commercial goods – and new trade regulations between the EU and the rest of the world have gradually come into force.
“This was intended to create a level playing field with local European manufacturers and retailers. Complying with these new regulations in the high volume, low value per parcel e-commerce market has been a challenge for merchants and logistics operators in the UK, US, China and the rest of the world” , the company said in a statement. statement.
“These players are looking for software solutions capable of managing the billions of cross-border parcels affected by this new European regulation. Solutions with a high degree of accuracy, speed and low cost per packet are needed. »
Automation of tax, compliance and customs departments
Eurora says its platform automates tax, compliance and customs services. “It assigns e-commerce products an appropriate HS code, calculates applicable VAT and duty amounts, and automatically creates electronic declarations for EU duties and taxes via simple API integration. The platform offers precision over 96% for e-commerce packages despite often patchy input data and works at a fraction of the time and cost of hybrid or manual code allocation solutions commonly used today.”
The HS code, referenced by the company, is a harmonized system code which is a standardized numerical method of classifying traded products. It is used by customs authorities around the world to identify products when assessing duties and taxes and for collecting statistics.
The company says its platform can be used by online sellers, marketplaces, logistics and postal companies, as well as tax and customs authorities, and can automatically process 5,000 requests per second with an accuracy of up to 96%.
The investment round was led by Amsterdam-based Connected Capital, with participation from existing investors including Change Ventures, Equity United and Eurora founder Marko Lastik.