Khatabook, a mobile application that enables SMEs to record & track business transactions, has raised USD $25 Mn Series A round from GGV Capital, Partners of DST Global, RTP Ventures, Sequoia India, Tencent, Y Combinator and others.
The round also saw participation from more than 20 prominent angels* including Amrish Rau, Anand Chandrasekharan, Deep Nishar, Gokul Rajaram, Jitendra Gupta, Kunal Bahl, Kunal Shah and others. This takes Khatabook’s total funding to date to $29 million since its inception in December 2018.
By completely automating the traditional business ledger process, the app has helped 5 Mn Indian merchants each save over 600 productive working hours in a year. Khatabook’s UPI based payment platform is more than doubling month on month. The team plans to launch other products for MSMEs in the next few months.
“We are excited to partner with global investors to accelerate our vision of building the operating system/ technology plumbing for India’s small merchants and businesses”, said Ravish Naresh, CEO, and Co-Founder, Khatabook. “India is at an inflection point with dramatically low data costs leading to strong adoption of smartphones, especially amongst its millions of merchants. At Khatabook, we have taken early but significant steps towards leveraging this trend to digitize India’s shopkeepers. For most of our merchants, we are the first business software they've used in their entire life. And we will continue to build more India-first innovations to further enable the growth of what is still a largely untapped sector ”, he added.
Khatabook, which recorded transactions totaling $3 Bn in August, effectively cuts down the receivables of merchants to half within a few weeks of onboarding them. The app has helped its users recover approximately $ 5 bn stuck in credit in the space of six months. This trend can lead to a significant impact on India’s MSME sector.
“Khatabook is having a huge impact on millions of Indian SME’s by becoming the system of record for their business dealings, the equivalent of a business ledger on their mobile phones. In most cases, it’s their first mobile SaaS product and could well be their gateway to using other mobile applications. For example, mobile payments are now growing on Khatabook at a very rapid pace.”, said Shailendra Singh, Managing Director, Sequoia Capital (India) Singapore. “Sequoia India couldn’t be more thrilled with the exponential growth the company has experienced since joining our Surge program. The team is thrilled to double down on the investment in Khatabook and excited to support Ravish and team on their journey.”
Growing by 20% every week and having established its functionality across more than 500 types of business - from kirana stores to mobile recharge shops, garment dealers and jewelers - the company aims to reach the businesses of 25 Mn Indian merchants in the next 12 months.
“We are excited to partner with Ravish the founding team of Khatabook. As a 2nd time founder, he has demonstrated the ability to hire quality team members and identify areas for rapid growth - two essential components to scale. As a global investor, we seek out founders who understand the local market and respond to growth opportunities with speed and agility - we certainly see this with the Khatabook team,” said Hans Tung, Managing Partner, GGV Capital.
One of the highest-rated apps in the business category on Google Play Store in India, Khatabook has on-boarded over 2.9 Mn active businesses and 5 Mn+ registered users since its December 2018 launch. Today, merchants across 3000+ Indian cities, use the Khatabook app in 11 languages. The app has also organically acquired users in Nepal, Pakistan and Bangladesh.