Khatabook, based in Bengaluru utility solutions provider which assists micro, small, and medium-sized businesses track business transactions, has closed an amount of $60 million Series B round of funding led by B Capital Group.
The round also witnessed active participation from new and existing investors that included Sequoia India, Partners of DST Global, Tencent, GGV, RTP Global, Hummingbird Ventures, Falcon Edge Capital, Rocketship.vc and Unilever Ventures. Angel investors Kevin Weil, Alexander Will, Kunal Shah, Kunal Bahl, and Rohit Bansal also participated.
Khatabook stated that the latest funding will permit it to ramp up its products and services offerings to Indian merchants, as the firm establishes technology solutions around financial services and a large merchant-focused distribution system.
Ravish Naresh, Co-founder and CEO, Khatabook, stated that Khatabook is the largest player in the micro, small, and medium business segment in the country, with over 8 million active merchants on the app. It plays a significant role in the digitisation of MSMEs – a sector that forms the backbone of our economy – that assists to increase their incomes and making them more efficient and competitive. They are looking to work to their best potential with the government and financial institutions to make the Indian MSMEs stronger.
In accordance to the firm, traditionally, Indian MSMEs function through a complex offline process to keep track of the credit flow with their consumers and suppliers, maintaining handwritten notes with separate accounts on each page.
Merchants put around three-four hours everyday tracking dues and lose significant revenue due to misplaced ledgers or missed collections, the company stated. Moreover Khatabook says that it has been instrumental in helping merchants manage their credit, creating transparency in cash flow, and increasing trust with end consumers – solving a critical need for India’s MSMEs.
Also more than upto million merchants are uploading data and engaging with the Khatabook app daily while adding $200 million worth of transactions diurnally.
The company also says that utilisation of a digital-first user acquisition approach has helped Khatabook reach over 8 million active merchants across 11 languages in less than a year.
Kabir Narang, B Capital Group General Partner and Co-Head of Asia B Capital said that he is excited to partner with Khatabook, which is enabling 60 million merchants go digital. Also they have been tracking the firm and are impressed by its product suite as it is addressing the critical trouble points of merchants across credit tracking, revenue leakage and collections.