Archit Gupta: Architect of Innovation in Fintech Transformation

In the ever-evolving landscape of fintech, one name stands out as a true innovator and visionary—Archit Gupta. As the founder and CEO of ClearTax, Gupta has played a pivotal role in transforming the platform from a simple online income tax filing service to a full-stack fintech player, disrupting traditional models and embracing new opportunities.

Archit Gupta’s journey into the world of entrepreneurship was marked by a counter-intuitive decision. In 2011, as a 27-year-old start-up employee in the Bay Area, Gupta chose to return to India instead of establishing his venture in the start-ups hub of San Francisco. Consulting his father, a chartered accountant, revealed a glaring issue—complex tax problems faced by consumers and enterprises. This revelation fuelled Gupta’s decision to address a problem he saw as an opportunity. Founded in 2011, ClearTax initially focused on providing an online platform for individuals to file income taxes. Gupta, along with his father and co-founders Srivatsan Chari and Ankit Solanki, embarked on this journey despite facing scepticism from peers and friends. The platform remained bootstrapped for over three years, weathering the challenges of limited revenue and initial market resistance.

ClearTax’s growth trajectory has been nothing short of astonishing. Starting with meagre revenue, the platform posted a remarkable Rs 60 crore in FY20, reflecting a 163 percent surge from the previous year. The number of individual users skyrocketed from 8 lakh to 40 lakh during this period, solidifying ClearTax’s position with a 10 percent market share in income tax filing.

Recognizing the need for diversification, Gupta led ClearTax to expand its services beyond individual tax filings. The platform ventured into catering to professionals and enterprises, with a significant focus on GST (Goods & Service Tax) services. ClearTax’s B2B segment now contributes 85 to 90 percent of its revenue, marking a strategic shift toward becoming a predominant player in the business-to-business fintech domain. In a bold move, ClearTax is now piloting lending services for small and medium enterprises (SMEs). Despite a crowded lending market, Gupta sees three key advantages—trust, data, and relationships. ClearTax’s decade-long presence and the trust it has built position it favourably. Additionally, the platform’s access to extensive financial data and existing relationships with SMEs create a unique advantage in managing the financial lifecycle of consumers and enterprises.

Investors, including SAIF Partners, have expressed confidence in ClearTax’s evolution into a full-stack fintech player. Mridul Arora, Managing Director at SAIF Partners, highlights ClearTax’s trusted brand, decade-long presence, and strong customer base as factors contributing to its success. The ability to quickly iterate, extreme customer obsession, and a product-led approach have further propelled ClearTax into a promising phase of growth.

ClearTax’s early phase was marked by challenges, including a lack of external validation and limited risk capital for unconventional models. Gupta and his team faced a significant threat when a billion-dollar American tax filing company, H&R Block, entered the Indian market. However, the backing of Y Combinator, a renowned Silicon Valley incubator, provided the strategic guidance needed to take on a formidable competitor.

The pivotal year 2016 saw ClearTax expanding its services beyond income tax filings to include GST solutions for enterprises. Despite initial skepticism and rejection, the gamble paid off, and ClearTax is now the biggest platform processing over $200 billion of GST in India. The journey from being a B2C company to a predominant B2B player underscores Gupta’s strategic vision and adaptability.

As ClearTax ventures into the lending space, Gupta emphasizes the importance of steady progress over rushed initiatives. While challenges persist, Gupta is confident in ClearTax’s ability to navigate headwinds and leverage tailwinds. The company’s contrarian mindset, combined with its innovative approach, positions it for continued success in the dynamic fintech landscape.