The Facebook connection of Indian bookkeeping app Khatabook; check who just poured $60 million into it

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Updated: May 21, 2020 6:32 PM

Credit and Finance for MSMEs: Small businesses are gradually shifting to the digital channel of recording transactions and book-keeping to streamline their operations and boost efficiency in cash flows.

economic relief package, fiscal measures, industries, businesses, coronavirus, covid 19small businesses often tend to burn out due to multiple issues such as lack of proper financial planning and internal accounting.

Credit and Finance for MSMEs: Digital ledger for MSMEs – Khatabook has raised $60 million in Series B funding round led Facebook co-founder Eduardo Saverin’s venture fund B Capital Group. 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 also participated in the round. Angel investors Kevin Weil who co-created Facebook’s digital wallet Calibra, meditation products company Calm’s chief strategy officer Alexander Will, Cred’s Kunal Shah, and Snapdeal co-founders Kunal Bahl and Rohit Bansal also invested in the round. Khatabook competes with Tiger Global and Lightspeed ventures backed OKCredit.

Khatabook allows MSMEs including merchants, kiranas etc to record financial information digitally and track credit flow with consumers and suppliers etc replacing the handwritten notebooks. The startup claimed to have more than 8 million merchants using its app while it is “looking to work closely with the government and financial institutions to strengthen Indian MSMEs,” Ravish Naresh, co-founder and CEO, Khatabook said in a statement.

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Small businesses are gradually shifting to the digital channel of recording transactions and book-keeping to streamline their operations and boost efficiency in cash flows. According to a survey by consulting firm RedSeer in August last year, small businesses are using two undisclosed book-keeping apps to record 43 per cent and 48 per cent transactions respectively. The survey, however, didn’t mention the number of SMEs surveyed. Sharing more statistics on its growth, Khatabook said over 1 million MSMEs are “uploading data” and “adding $200 million worth of transactions every day.” “We expect the number of digitally sophisticated MSMEs to double over the next three to five years,” said Kabir Narang, General Partner & Co-Head of Asia, B Capital Group.

Apart from limited access to finance and credit and technology talent as major challenges, small businesses often tend to burn out due to multiple issues such as lack of proper financial planning and internal accounting. The global accounting software market is expected to cross $26,600 million by 2024 growing at CAGR of 8.92 per cent, according to Market Research Future report.

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