Toronto-based Blue J has announced a US$176 million Series E financing to expand its AI tax platform, supporting a push beyond research into the work tax professionals prepare for clients.
The round was led by JMI Equity, with participation from Oak HC/FT, Sapphire Ventures, and Intrepid Growth Partners. It values Blue J at more than US$700 million, which the company puts at over C$1 billion.
“An answer is rarely the end of a tax professional’s job. It’s the beginning of the work a client needs done,” said Benjamin Alarie, CEO and co-founder of Blue J.
The funding will support Workflows, its AI agents for tasks such as reviewing tax returns, preparing responses to IRS notices, analyzing agreements, and drafting client communications. Blue J says professionals can inspect supporting sources and workflow steps, review the output, and make the judgment calls.
JMI principal Jack Duane will join Blue J’s board as part of the investment.
The financing comes 15 months after Blue J’s US$122 million Series D. The company says annual recurring revenue has grown 165% since that round, while its customer base has reached more than 6,500 organizations.
According to BetaKit, the round includes purchases of shares from existing investors and employees. Alarie confirmed that component but did not disclose its size, meaning a portion of the financing will go to selling shareholders.
Blue J has doubled its workforce over the past year and expects to exceed 200 employees by year-end. Alarie told BetaKit the company plans to establish a UK office, while most employees are expected to remain in Toronto.
The raise follows Blue J’s October partnership with Legora, which is designed to let eligible joint customers access its tax research within Legora’s legal AI workspace. The integration provides answers with citations linking back to Blue J’s sources, bringing specialist tax analysis into lawyers’ existing workflows.