Multiplier’s Bold AI Strategy: From Building Software to Buying Businesses
In late 2022, Noah Pepper—former Stripe Asia-Pacific business lead—launched Multiplier to sell software to tax accountants. But the launch of ChatGPT changed everything.
“I realized I was building in the wrong direction,” Pepper told TechCrunch. “Instead of selling software, I should help service firms become more effective with AI.”
That insight sparked a major pivot.
Instead of chasing accounting firms as clients, Pepper decided to acquire them—starting with Citrine International Tax, a 12-person boutique firm focused on cross-border tax.
Multiplier supercharged Citrine with its AI-powered tools, eliminating manual tasks and more than doubling profit margins. The success was clear: buying and upgrading firms worked better than selling them software.
Today, Multiplier (now called Multiplier Holdings) has announced a $27.5 million funding boost, split across seed and Series A rounds. Ribbit Capital led the seed, while Lightspeed Venture Partners led the Series A. SV Angel also participated.
A New Playbook: Buy, Automate, Scale
Multiplier’s approach is part of a growing trend: acquiring small service businesses and scaling them with AI. It’s a private equity-inspired roll-up strategy—but powered by generative AI.
“This wasn’t possible before AI,” said Justin Overdorff, partner at Lightspeed. “Now, startups like Multiplier can turn traditional firms into lean, tech-enabled profit machines.”
Overdorff added that small firms are ideal targets—they’re more open to change. “Try introducing AI at a 200-person accounting firm, and adoption is slow. But a smaller team can move fast.”
Citrine was the perfect test case. After the acquisition, Multiplier didn’t just improve margins—it helped the business grow.
The Big Goal? Compete with the Big Four
Multiplier now has its sights set higher. Pepper wants to go beyond personal tax services. His goal: build an AI-powered alternative to Big Four accounting giants like Deloitte, EY, PwC, and KPMG.
To get there, the company is actively looking to buy more service firms with high recurring revenue—especially those led by founders excited to embrace and help shape AI tools.
“It’s like backing a great founder in a niche category,” said Pepper. “We’re betting on people who know their space and want to scale faster with AI.”
What Makes This Model Work?
Multiplier’s secret sauce is a smart mix of software and services. By acquiring firms and integrating AI, it improves efficiency, profitability, and growth—all while preserving human expertise.
And they’re not alone. VCs are increasingly backing AI-powered roll-up models. Lightspeed has invested in three more startups following a similar playbook (still in stealth), and top investors like General Catalyst, Thrive, Khosla Ventures, and Elad Gil are also joining the trend.
What’s Next for Multiplier?
With new capital in hand, Multiplier plans to:
- Acquire more small-to-mid-size tax and compliance firms
- Expand its AI toolset across accounting, legal, and other service sectors
- Continue building an agile, tech-first alternative to traditional firms
Multiplier is also exploring acquisitions in other verticals where manual workflows slow down progress—and where AI can unlock serious value.
Conclusion
What started as a SaaS play is now a bold new approach to reimagining how services are delivered. By merging AI with human expertise, Multiplier is transforming niche service firms into tech-powered enterprises—and investors are taking notice.
