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§ Private Profile · San Francisco, CA, USA
Automatic software R&D capitalization
Key people at Mogara.
Mogara was founded in 2022 by Jay Gokhale (Founder) and Neha Shah (Founder).
Mogara automates software R&D capitalization.
We replace accounting leaders chasing down engineers for timesheets with software that plugs directly into the developer workflow.
Key people at Mogara.
Mogara is a San Francisco-based software company founded in 2022 that automates the capitalization of software R&D expenses by integrating directly with developer workflows. Its platform captures and categorizes capitalizable activities from IDEs, code repositories, and issue trackers, eliminating manual data collection and enabling faster, more accurate financial reporting compliant with accounting standards. Mogara primarily serves software companies with sizable engineering teams (30+ engineers) that need to comply with new IRS requirements mandating capitalization of software development costs. By automating this complex and time-consuming process, Mogara helps accounting and engineering leaders reduce errors and administrative burden while accelerating close cycles[1][2].
Mogara was founded in 2022 in response to a significant IRS tax code change requiring all US software companies to capitalize software development costs starting with the 2022 tax year. The founders, including Neha (a former product manager at Affirm) and Jay (a former product engineer at Stripe and early startup engineer), recognized the pain points accounting teams faced chasing engineers for timesheets and manually categorizing R&D activities. Leveraging their experience in fintech product engineering and financial reporting, they built a solution that integrates directly with developer tools to automate data capture and capitalization categorization, providing early traction among software companies needing to comply with the new regulations[1][2].
Mogara rides the wave of increasing regulatory scrutiny and complexity around software R&D expense capitalization, a process now mandatory for US software companies due to IRS changes. The timing is critical as companies scramble to comply with new tax rules that significantly impact financial reporting and tax filings. Market forces such as the growth of software development teams, the complexity of modern engineering workflows, and the need for accurate, audit-ready financial data favor automated solutions like Mogara. By bridging the gap between engineering and accounting, Mogara influences the broader ecosystem by streamlining compliance, reducing friction between departments, and enabling companies to better manage their R&D investments and tax liabilities[1][2].
Mogara is well-positioned to capitalize on the $13 billion market opportunity created by mandatory software R&D capitalization. Going forward, the company is likely to expand integrations with more developer tools and accounting platforms, enhance AI-driven categorization capabilities, and broaden its customer base beyond US software firms as similar regulations emerge globally. Trends such as increased automation in finance, tighter regulatory compliance, and the growing scale of software engineering teams will shape Mogara’s trajectory. Its influence may evolve from a compliance tool to a strategic platform that provides deeper insights into R&D productivity and investment efficiency, tying financial data more closely to engineering output and innovation metrics[2].
Mogara was founded in 2022 by Jay Gokhale (Founder) and Neha Shah (Founder).
