Khatabook, an accounting and business record-keeping startup, has raised $25 million (approx ₹177 crore) in series A funding from Partners of DST Global, Sequoia India, Tencent and others. While, prominent investors like Kunal Shah, Founder, Cred; Kunal Bahl, Co-founder, Snapdeal; Jitendra Gupta, Head at LazyPay; and Anand Chandrasekharan, former-Facebook member; were among others who participated in this round of funding for Khatabook, cited Mint.
“With this round of funding, we are looking to scale our tech team, build more products that can help SMEs manage their business, and focus strongly on security and other essential apps,” said Ravish Naresh, CEO and Co-founder, KhataBook.
With this funding, the total funding raised by KhataBook will be $29 million (approx ₹205 crore).
Khatabook, based out of Bengaluru, was founded by Ravish Naresh in 2018. It offers a smartphone-based application that helps the entrepreneur with payment reminders, which are automatically sent to customers and helps in accounting as well.
The aim is to simplify the lives of more than 50 million shopkeepers in the country by keeping track of all their transactions and payments. The platform Khatabook is one of the 17 startups from the first cohort of Surge, Sequoia India’s rapid scale-up programme for early-stage startups in India and Southeast Asia.
Narush further said that currently, India is at an inflection point with dramatically low data costs and strong adoption of smartphones, especially by several merchants. “At KhataBook, we have taken early but significant steps towards leveraging this trend to digitise 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,” Ravish added.
Shailendra Singh, Managing Director, Sequoia Capital (India) Singapore, said, “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 is now growing on KhataBook at a very rapid pace. Sequoia India couldn’t be more thrilled with the exponential growth the company has experienced since joining our Surge programme. The team is thrilled to double down on the investment in KhataBook and excited to support Ravish and team on their journey.”
Khatabook claims to have helped over five million merchants save over 600 working hours in a year, each. It adds that their UPI-based payment platform is doubling month on month.