K1x has secured $175 million in growth funding led by Sumeru Equity Partners, with follow-on investment from Edison Partners. Sumeru will become the majority shareholder.
The funding comes as private markets—now exceeding $20 trillion—drive rising complexity in tax reporting, with manual processes contributing to an estimated $27 billion annual compliance burden.
K1x’s platform uses AI to extract, standardize, and aggregate K-1 and related tax data across forms including 1099s, W-2s, and 990s, aiming to replace manual workflows with digital infrastructure in what remains a fragmented, low-digitized segment of fintech.
The company said it will use the capital to expand AI capabilities, accelerate product development, and strengthen customer operations. K1x already works with institutional investors and accounting firms and is positioning itself as a core infrastructure provider for private market tax compliance—an ambitious shift beyond traditional point solutions.