[Funding alert] Fintech startup Khatabook raises $60M in Series B led by B Capital Group
, a Bengaluru-based utility solutions provider which helps micro, small, and medium-sized businesses track business transactions, has closed a $60 million Series B round of funding led by B Capital Group.
The round also saw participation from new and existing investors including 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.
In a statement, Khatabook said the latest funding will allow it to ramp up its products and services offerings to Indian merchants, as the company builds technology solutions around financial services and a large merchant-focussed distribution platform.
Ravish Naresh, Co-founder and CEO, Khatabook, said,
"Khatabook is the biggest player in the micro, small, and medium business segment in the country, with over 8 million active merchants on the app. It is playing an important role in the digitisation of MSMEs – a sector that forms the backbone of our economy - helping to increase their incomes and making them more efficient and competitive. We are looking to work closely with the government and financial institutions to strengthen Indian MSMEs.”
According to the company, traditionally, Indian MSMEs follow a complex offline process to keep track of the credit flow with their consumers and suppliers, maintaining handwritten notebooks with separate accounts on each page. Merchants spend around three-four hours everyday tracking dues and lose significant revenue due to misplaced ledgers or missed collections, the company said. Khatabook claims 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.
More than one million merchants are uploading data and engaging with the Khatabook app daily while adding $200 million worth of transactions every day. The company also said that using a digital-first user acquisition approach has helped Khatabook reach over 8 million active merchants across 11 languages in less than a year.
"B Capital is excited to partner with Khatabook, which is enabling 60 million merchants go digital. We have been tracking the company and are impressed by its product suite as it is addressing the critical pain points of merchants across credit tracking, revenue leakage and collections. We expect the number of digitally sophisticated MSMEs to double over the next three to five years," added Kabir Narang, B Capital Group General Partner and Co-Head of Asia.
In October 2019, Khatabook secured $25 million in Series A funding from Partners of DST Global, GGV Capital, Sequoia India, Tencent, and others. In March this year, International cricketer and former India captain, Mahendra Singh Dhoni, also made an undisclosed amount of funding in the company.
Edited by Megha Reddy