Aibidia Receives €13 Million Investment

Aibidia, Europe's leading transfer pricing platform, has raised €13 million in a financing round co-led by DN Capital and FPV Ventures. It also included existing investors Icebreaker.vc and Global Founders Capital. Aibidia will use the new capital to strengthen its world-class team, expand its global presence in London and Helsinki, and revamp the platform.

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Aibidia Will Revolutionize Global Transfer Pricing

Aibidia, established in 2014, will help multinational companies and their advisors to manage their transfer pricing obligations related to their global cross-border business together on the same platform. The platform enables multinationals such as Volvo, Bridgestone and Recipharm to effectively define fair global transfer pricing and automate related reporting. This technology gives them the ability to comply with global cross-border tax obligations and regulations.

Today, more than 80% of world trade is driven by transfer pricing (TP) - internal transactions carried out by multinational companies. It enables companies to contribute effectively to the communities in which they operate. Transfer pricing is a practice that aims to ensure that multinational companies' taxes are fairly distributed and collected across the wider international business sector. There are also potential transfer pricing tax liabilities for companies arising from operating in a cross-border, global model.

Previously, managing transfer pricing was a laborious and costly process. It was also mostly done manually, despite spreadsheets and databases. Aibidia's technology, however, streamlines and speeds up the process and significantly reduces costs. Thanks to Aibidia's technology, businesses can manage the transfer pricing process more effectively. They gain more control and visibility. This process is now automated and made more efficient.

Aibidia's platform currently facilitates collaboration between internal finance and tax teams, as well as external advisors and other stakeholders. In the future, this collaboration will include tax authorities. Unlike other transfer pricing technologies, Aibidia enables stakeholders to work together on transfer pricing workflows, allowing them to identify, allocate and report on tax issues with a single click. In this way, efficient collaboration between stakeholders is achieved and transfer pricing-related tax issues can be managed more quickly and effectively.

Aibidia's collaborative transfer pricing transformation

Aibidia's platform not only saves time and costs, but also helps multinational companies adapt to changing market and regulatory conditions at a time of increasing transfer pricing burden. During this period, factors such as international tax reforms and changing transfer pricing regulations are among the key issues that companies need to adapt to. In particular, regulations such as BEPS (Base Erosion and Profit Shifting), implemented by the OECD as well as the UK, require companies to adapt to transfer pricing requirements. Aibidia's platform helps companies by responding quickly and effectively to these changing regulations.

Aibidia's world-class team has more than 100 years of combined transfer pricing experience. Hannu-Tapani Leppänen, founder and CEO, has a background as a lawyer, former executive at EY and more than 20 years of experience in international tax consulting. Leppänen previously founded the transfer pricing advisory firm Alder and Sound. Aibidia's team has used this extensive expertise to develop the Digital Transfer Pricing Taxonomy and API. This taxonomy and API were created by codifying complex transfer pricing laws from more than 150 countries. This allows multinational companies to manage their properties and functions in an integrated way like never before.

The Aibidia platform currently operates from offices in Helsinki and London and manages more than 5000 organizations in over 150 jurisdictions. Partnerships with PwC Finland and other leading global accounting and advisory firms have also been established.