Disrupting the traditional approach to bookkeeping
Legally registered as ADJ Utility Apps Private Limited, the company was founded by Ravish Naresh, Jaideep Poonia, Ashish Sonone, and Dhanesh Kumar.
It 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. Y Combinator and Info Edge are also investors in Khatabook.
Khatabook and its app are impacting the Indian SMEs by becoming the system of record for their business dealings, the equivalent of a business ledger on their mobile phones, says Shailendra Singh, Managing Director, Sequoia Capital (India) Singapore.
Businesses can manage their credit accounts on the app, where transactions are recorded and available for review.
The company’s mobile app service shares WhatsApp and SMS reminders to users when the money is due to be paid or collected. The app also provides support in regional languages.
It helps businesses understand and make better decisions with reports that it generates. The app also backs up all transactions online automatically, so that merchants don’t have to worry if they lose their smartphone.
A YourStory list of startups in 2019 with groundbreaking ideas that are creating a deep impact.
Data is now cheap in India and smartphone use is on the rise. However, a large number of small businesses prefer recording business transactions in books. Most of them still rely on old practices such as making bills on paper.
They are yet to completely digitise their bookkeeping processes. KhataBook, an app by ADJ Utility Apps Private Limited, aims to leverage the trend of increased smartphone use in merchants by becoming the first business accounting software they've used.
Khatabook says the app has helped its users recover approximately $5 billion stuck in credit in the space of six months. This trend can lead to a significant impact on India’s MSME sector.
As of August 2019, KhataBook recorded over $3 billion worth of transactions on its platform. This, the team adds, has cut down the receivables of merchants to half within a few weeks of onboarding them.
It claims to have helped over five million merchants save over 600 working hours in a year, each. Its UPI-based payment platform is also doubling month-on-month. Khatabook has expanded its footprint across 3,000 cities in India.
In 2019, the startup raised $25 million in Series A funding from Partners of DST Global, GGV Capital, Sequoia India, Tencent, and others. Prominent investors like Kunal Shah, Founder, Cred; Kunal Bahl, Co-founder, Snapdeal; Jitendra Gupta, Head - LazyPay; and Anand Chandrasekharan, ex-Facebook; were among others who participated in the round of funding.
KhataBook says it is growing 20 percent every week and has use cases with more than 500 types of businesses. The team plans to launch other products for MSMEs in the next few months and aims to reach over 25 million Indian merchants in the next 12 months.
Other disruptors in the market include OkCredit, started by Harsh Pokharna, Gaurav Kumar, and Aditya Prasad, and Vyapar, started by Sumit Agarwal.