Khatabook, a startup that’s helping merchants in India digitize their bookkeeping and accept online payments, mentioned on Tuesday it has raised $100 million in a brand new financing spherical because it prepares to launch monetary providers.
The startup’s new financing spherical — a Collection C — was led by Tribe Capital and Moore Strategic Ventures and valued the two-and-a-half-year-old Bangalore-headquartered startup at “near $600 million,” its co-founder and chief government Ravish Naresh instructed TechCrunch in an interview.
As a part of the brand new spherical — which was oversubscribed and in addition noticed participation of Balaji Srinivasan and Alkeon Capital in addition to many different current buyers together with Sriram Krishnan, B Capital Group, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, and Higher Capital — KhataBook mentioned it’s also shopping for again shares price $10 million to reward its present and former workers and early buyers. The startup mentioned it’s also increasing its inventory choices pool for workers to $50 million
Whilst lots of of thousands and thousands of Indians got here on-line previously decade, most retailers within the South Asian nation are nonetheless offline. These retailers, who run neighborhood shops, depend on conventional methods for bookkeeping — sustaining ledgers on paper — which might be each time-consuming and liable to errors.
KhataBook is trying to vary that by offering these retailers with a set of merchandise to digitize their bookkeeping and handle their bills and employees. The startup, which employs over 200 individuals, mentioned it has amassed over 10 million month-to-month energetic customers who’re unfold throughout practically each zip code within the nation.
“At Tribe, we consider strongly within the energy of the community impact and the way it can create moats for companies. Khatabook has efficiently constructed such a community by empowering this seismic shift amongst MSME companies to maneuver from paper to digital, actually. Regardless of its massive early success and quick adoption to this point, the corporate is early in its path to energy the section. We’re thrilled to be part of its progress because it leverages its community to construct further scale,” mentioned Arjun Sethi, co-founder and associate at Tribe Capital, in a press release.
KhataBook has expanded its product choices in recent times to attempt to clear up a variety of different challenges retailers face. Later this 12 months, Naresh mentioned, the startup will present lending to retailers. “We’re at present testing the product with each retailers and distributors,” he mentioned.
On-line lending has boomed in India in recent times, however only a few corporations are in the present day trying to cater to small- and medium-sized companies. “The unaddressed SME credit score demand in India is ~$300-$350 billion, with greater than 90% of present demand being met by banks. A typical digital SME lender focusses on 1-5 million Indian rupees ($13,575 to $67,875) ticket measurement with no collateral, common tenure ~12-18 months, and with some ecosystem anchor,” analysts at Financial institution of America wrote in a report.
As with scores of different corporations, the pandemic was not excellent news for KhataBook, which misplaced a good portion of the enterprise final 12 months after Indian states enforced lockdown to limit mobility. However the startup has since bounced again. The month of July, mentioned Naresh, was its all-time excessive. “MSMEs have come again very strongly and companies weren’t as impacted by the second wave this 12 months as they had been by final 12 months’s,” he mentioned.
It is a creating story. Extra to comply with…