Tributi: The Startup Helping Colombians with Their Tax Returns

Tributi is a startup that has made a significant impact in Colombia by simplifying the tax filing process for over 300,000 citizens. Founded by Andrés Vélez and Simón González in 2017, the company was inspired by the personal experiences of its founders during tax season and by the successful model of the U.S. company TurboTax.

From Idea to Reality: Tributi’s Journey

Tributi's path to success had a crucial turning point in 2018 when they were accepted into Y Combinator, one of the most prestigious startup accelerators in Silicon Valley. According to Vélez, this experience not only provided them with the resources needed to grow but also changed their mindset. "They teach you to think big, to scale quickly," Vélez remarks, a philosophy that has been key to the company's evolution.

Tributi has developed a business model that allows them to generate all their annual revenue in just three months, the period when Colombians must file their tax returns. With plans ranging from $199,000 to $499,000, the company has successfully adapted its offerings to meet the needs of the Colombian market, where there is a preference for assisted services. Instead of fully automating the process, Tributi offers personalized service through a network of approximately 300 certified experts during peak tax season.

The Team Behind Tributi

One of the initial challenges for Tributi was gaining the trust of its users. To overcome this, the startup opted to form partnerships with banks and companies, which offer Tributi’s service as a benefit to their clients and employees. Vélez notes that this strategy was more effective than trying to convince each customer individually.

Tributi operates with a permanent team of about 50 people, but this number increases significantly during tax season. The company has structured an operational model that allows them to manage the surge in demand during this period, making their service difficult to replicate.

Continuous Innovation: Filing Taxes via WhatsApp

Since its inception, Tributi has raised US$3 million from angel investors and investment funds, including K50 Ventures and the venture capital arm of Grupo Bancolombia. Despite opportunities for rapid growth, the company chose to focus on achieving profitability before expanding into other markets. In 2023, Tributi not only reached the break-even point but also achieved an EBITDA margin of 35%, a significant milestone that reinforces the sustainability of its business model.

In its quest to improve user experience, Tributi has launched a new option for filing tax returns via WhatsApp. This service allows users to communicate directly with a tax professional through the app, offering a more natural and accessible experience.

Commitment to Legal Compliance and Tax Efficiency

Tributi stays up to date with tax regulations in Colombia, enabling them to ensure that their clients maximize their tax benefits without engaging in tax evasion. "We dare to guarantee that if someone pays less elsewhere with another accountant, that return is done incorrectly," Vélez asserts, highlighting the trust they have built among their clients.

With a proven business model and profitability achieved, Tributi is now exploring options for international expansion, aiming to bring their solution to other markets. The startup continues to innovate and adapt to the needs of Colombians, solidifying its position as a key player in the country’s tax services sector.