The accounting services provider offers a digital ledger mobile app to micro, small and medium businesses.
The B2B fintech solution has more than 1 crore registered merchants in districts of Western India
Mumbai, 25th May 2020 – Khatabook, the leading utility solutions provider which helps micro, small, and medium-sized businesses record and track business transactions, has closed a Rs.454 Crore Series B round of funding co-led by B Capital Group and existing investors Sequoia India and DST Partners.
The latest funding will allow Khatabook to ramp up its product and service offerings for India’s merchants, as the company takes a leap in building technology solutions around financial services and a large merchant-focused distribution platform.
Today, 1 crore registered merchants across cities and towns in Western India use Khatabook to run their daily businesses. In Western India, the app has received the highest penetration via word of mouth. It is most popular amongst merchants running grocery and general stores, mobile shops, automobile shops, and computer stores. Khatabook app is also very popular among small and medium-sized pharmacies, bakeries, hardware stores, recharge shops, paan shops, stationery stores, clothing stores as well as independent contractors.
“Khatabook is the biggest player in the micro, small, and medium business segment in the country, with over 80 Lakh monthly active users in India. Khatabook is playing an important role in the digitization of MSMEs – a sector that forms the backbone of our economy – helping to increase their incomes and making them more efficient and competitive. Merchants across Maharashtra, Rajasthan, Gujarat among many other Western states are using Khatabook to manage their business. We are looking to work closely with the government and financial institutions to strengthen the MSMEs of India”, said Ravish Naresh, co-founder, and CEO of Khatabook.
Khatabook’s digital-first customer acquisition approach while keeping the needs of small merchants at the center of product design, has given it a formidable leap in the market. The app is used by registered merchants in 11 languages.
“We are excited to partner with Khatabook, which is enabling India’s 6 crore merchants to go digital. We have been tracking the company closely and are impressed by its suite of products as it addresses critical pain points for merchants across credit, revenue leakage and collections. We expect the number of digitally sophisticated MSMEs to double over the next three years. With the current lockdown situation, merchants need reliable digital tools like Khatabook even more to enable their business.” said Kabir Narang, B Capital Group General Partner & Co-Head of Asia
Khatabook’s focus on keeping their software simple and intuitive for merchants has led to high adoption, engagement, and retention. The app’s popularity is evident as more than 10 Lakh merchants are uploading data and engaging with the Khatabook app daily while adding Rs.1500 Crores worth of transactions every day. High engagement and utilization of the platform has resulted in more than 25% of the total active merchants joining the platform through word-of-mouth and referrals.