Avalara raises $96 million from existing investors to expand its cloud-based tax service

Seattle-based Avalara said today it had raised another round of $96 million, bringing its overall fundraising total to $300 million.

The company, which offers a cloud-based tax compliance system for businesses, said the latest round includes $46 million to “repurchase shares from early investors.” The balance will be used for growth and possible acquisitions.

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“We are gratified by our investors’ continued support and commitment to Avalara,” said Scott McFarlane, founder and CEO of the company, in a statement. “This financing offers some long-term individual shareholders a liquidity event, while enabling more recent institutional investors to increase their stake.”

Participants in this round include Warburg Pincus, Technology Crossover Ventures, and Sageview Capital