Credit Entry: Khatabook raises $100 million, valuation touches $600 million

By: |
August 25, 2021 4:00 AM

Angel investor and entrepreneur Balaji Srinivasan and start-up investor Sriram Krishnan participated as independent investors in the round, the company said in a statement on Tuesday.

The financial services on the Khatabook platform will digitally foster lending, payment and deposits-related efficiencies in the ecosystem, the firm said.The financial services on the Khatabook platform will digitally foster lending, payment and deposits-related efficiencies in the ecosystem, the firm said.

Khatabook, the fintech start-up which provides digital ledger app for small businesses, has raised a fresh $100 million in funding led by Tribe Capital and Moore Strategic Ventures at a valuation of nearly $600 million. The investment, which is part of the company’s series C financial round, has also been backed by a clutch of other investors, including Alkeon Capital, B Capital Group, Sequoia Capital, Tencent, RTP Global, Unilever Ventures and Better Capital.

Angel investor and entrepreneur Balaji Srinivasan and start-up investor Sriram Krishnan participated as independent investors in the round, the company said in a statement on Tuesday.

The firm said that it is buying back $10 million worth of ESOPs to acknowledge and reward employees, ex-employees and early investors who contributed to the start-up’s growth. Eligible employees will be able to sell as much as 30% of their vested options. Khatabook has also expanded its ESOP pool to $50 million.

Founded in January 2019, the start-up builds tech solutions for small and medium businesses. Its flagship Khatabook app enables businesses to digitally record the credit they extend to customers. To digitise end-to-end business processes for MSMEs, the company also launched Pagarkhata, a staff and salary management platform. Khatabook is available in 13 languages and claims to have over 10 million monthly active users across platforms. The firm said that its footprint reaches in almost every Indian district.

The fresh capital will be used to build a bouquet of financial services besides expanding its talent base. The company that currently employs over 200 staff will accelerate hiring, especially in the engineering, product, design, analytics and data science functions. “The first phase of our journey was enabling digital transformation by building a tech ecosystem for Indian MSMEs. Now that we have created a widely accepted digital platform, the next step will be digitally-enabled financial services for small businesses,” said CEO & co-founder Ravish Naresh.

The financial services on the Khatabook platform will digitally foster lending, payment and deposits-related efficiencies in the ecosystem, the firm said.

As more MSMEs opted for technology solutions, Khatabook experienced 150% y-o-y growth in FY21, the company claimed.

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