Avalara Named Top-Tier Software Vendor by APPS RUN THE WORLD in the APPS TOP 500 Market Report

Avalara Strengths, Domain Expertise, and Key Differentiators

Avalara's strengths are rooted in its extensive partner ecosystem, advanced technology, and comprehensive tax compliance solutions. With over 1,200 signed partner integrations, Avalara seamlessly connects with a wide array of business applications, including ERP, eCommerce, POS, and CRM systems, facilitating efficient tax compliance processes for businesses of all sizes . The company's innovative use of artificial intelligence and machine learning enhances its ability to manage complex tax requirements globally, positioning Avalara as a leader in tax compliance automation . Additionally, Avalara's flagship product, AvaTax, integrates with numerous software systems such as Salesforce, Epicor, NetSuite, Sage, and Microsoft Dynamics, offering robust and scalable solutions to meet diverse business needs.

Avalara Recent Developments

In February 2025, Avalara announced the release of its updated connector for Salesforce Revenue Cloud, now available on Salesforce AppExchange. This enhanced integration simplifies tax compliance across Configure, Price, Quote (CPQ), Billing, and Subscription Management within Revenue Cloud. Key features include automated field mappings from Salesforce to Avalara, support for managing tax policies, multi-company mappings, and unique tax codes. These advancements enable businesses to achieve faster tax calculations and streamline their sales workflows, aligning with Avalara's commitment to supporting dynamic customer needs in a complex regulatory landscape.

In November 2024, Avalara introduced Avalara Tax Content (ATC) for Lodging, an AI-powered solution designed to streamline tax compliance for the lodging and hospitality sectors. ATC for Lodging automates the gathering, processing, and organization of lodging tax data, providing businesses such as hotel chains and online travel agencies with up-to-date, jurisdiction-specific tax content. This solution supports both online and offline operations, offering flexible delivery options via API or SFTP, and can be integrated with Avalara AvaTax for Hospitality to enhance real-time tax calculation capabilities. By simplifying compliance across multiple jurisdictions and reducing manual errors, ATC for Lodging helps hospitality businesses maintain accurate tax calculations and adapt to evolving tax regulations.

In May 2023, Avalara, Inc. introduced Avalara E-Invoicing and Live Reporting, a compliance API aimed at simplifying e-invoicing mandates for multinational businesses. The API helps businesses manage the complexities of evolving e-invoicing requirements globally, streamlining compliance, optimizing payment cycles, and reducing costs. It offers a centralized approach to international compliance, integrating into various systems via a single API and adhering to evolving legislative requirements.

Avalara Mergers and Acquisitions (M&A) Activities

In December 2024, Avalara acquired Oobj Tecnologia da Informação Ltda., a Brazil-based e-invoicing software provider. This strategic acquisition enhances Avalara's global e-invoicing capabilities by integrating Oobj's expertise into its E-Invoicing and Live Reporting (ELR) solution. The move provides Avalara with endpoint connectivity in Brazil and extends its reach to six additional Latin American countries: Mexico, Colombia, Peru, Chile, Argentina, and Costa Rica. Through this acquisition, Avalara aims to offer customers and partners access to Brazilian e-invoicing via a single global API, streamlining compliance processes across multiple jurisdictions.

In August 2024, Avalara acquired Hopscotch, a B2B invoice and bill payment platform specializing in real-time, fee-free payments for small businesses. This acquisition aligns with Avalara's strategy to expand its offerings for small and medium-sized businesses by integrating Hopscotch's invoicing and cash flow management capabilities into its tax compliance automation solutions. The integration aims to provide a more comprehensive financial operations platform, enhancing Avalara's value proposition to its SMB clientele.

In August 2022, Avalara, Inc. announced its acquisition by Vista Equity Partners for $8.4 billion in an all-cash transaction. Founded in 2004, Avalara is known for its cloud-native tax compliance solutions and extensive partner network. The acquisition aims to enhance Avalara's platform through strategic investments in innovation, workforce expansion, and M&A activities, leveraging Vista's expertise in enterprise software. Upon completion, Avalara will operate as a private company under the same name and brand.

Avalara Customers in ARTW Customer Database

Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Avalara applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Avalara and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Avalara Platform, Avalara Compliance Cloud, Avalara AvaTax, Avalara Returns, Avalara CertCapture customers.

Avalara Key Enterprise and Cloud Applications

Avalara Platform, Avalara Compliance Cloud, Avalara AvaTax, Avalara Returns, Avalara CertCapture

Avalara Revenues, $M:

Avalara Revenue Breakdown By Type, $M:

Avalara Enterprise Applications Revenues By Functional Markets, $M:

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Avalara Direct vs Indirect sales

Avalara Customers - Breakdown by Geo, Size, Vertical and Product

List of Verified Avalara Customers

No. of Avalara Customers: 41000

No. of Avalara Enterprise Applications Customers: 41000

No. of Avalara Cloud Customers: x

No. of Avalara Cloud Subscribers: x

Avalara serves a diverse and extensive customer base exceeding 41,000 businesses globally, encompassing small and medium-sized enterprises as well as large corporations. Notable clients include Indinero, Electric Motor Supply Company, PXG, Ag Solutions Group, Ignite Spot Accounting, and Comcast. The company's tax compliance solutions are utilized across various industries and regions, highlighting its broad market reach and adaptability. Avalara's platform integrates with over 1,200 partners, facilitating seamless connections with existing business systems such as ERP, ecommerce platforms, and billing programs, thereby streamlining tax compliance processes for its clients.

Avalara Market Opportunities, M&A and Geo Expansions

Avalara integrates artificial intelligence and machine learning into its tax compliance solutions to automate complex calculations, reduce errors, and improve operational efficiency. With operations in over 75 countries, the company supports international tax requirements such as VAT, GST, and customs duties, enabling businesses to manage cross-border transactions more effectively. Its cloud-based platform is well-positioned to help clients meet evolving electronic invoicing mandates and navigate diverse regulatory landscapes. By advancing its technology and expanding globally, Avalara continues to address growing compliance needs across a shifting tax environment.

Avalara Risks and Challenges

In April 2025, Avalara appointed Sydney Carey as Chief Financial Officer and Karyn Smith as Chief Legal Officer, both joining the executive leadership team. While these appointments bring extensive experience to the company, such leadership transitions can introduce risks. Potential challenges include disruptions in strategic continuity, shifts in corporate culture, and adjustments in financial and legal strategies. Carey's mandate to modernize finance and accounting processes and Smith's oversight of global legal operations are significant undertakings that may lead to temporary operational uncertainties. Additionally, integrating new leadership into existing teams requires careful change management to maintain employee morale and productivity. These factors underscore the importance of effective onboarding and clear communication to mitigate risks associated with executive transitions.

While their acquisitions have helped them expand their offerings and enter new markets, failing to integrate these acquisitions successfully could negatively impact their business, financial condition, and results of operations. Additionally, the debt incurred for financing these acquisitions poses a significant risk to Avalara's financial stability.

Avalara Ecosystem, Partners, Resellers and SI

Avalara has built a strong ecosystem of technology integrations and partnerships, including system integrators and value-added resellers. Their extensive partnership network enables them to offer cloud-based transaction tax solutions to customers globally. Some of Avalara's key partners include Epicor, Sage, Netsuite, Microsoft, SAP, and Magento, among others, highlighting their commitment to providing innovative tax compliance solutions to businesses worldwide.

In conclusion, Avalara's innovative approach, strategic acquisitions, and strong partner network have positioned them as a leader in the tax compliance automation space. With a focus on expanding their suite of solutions, serving more businesses globally, and embracing emerging technologies, Avalara is poised for continued growth and success in the years to come.

Research Methodology

Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.

Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).

For additional information on our methodologies, here's the link: