Khatabook, a start-up that is helping small businesses in India record monetary deals digitally and accept payments
online with an app, has actually raised $60 million in a new funding round as it wants to gain more ground on the planet’s second most populated country. The brand-new funding round, Series B, was led by Facebook co-founder Eduardo Saverin’s B Capital. A range of other brand-new and current investors, including Sequoia India, Partners of DST Global, Tencent, GGV Capital, RTP Global, Hummingbird Ventures, Falcon Edge Capital, Rocketship.vc and Unilever Ventures, likewise participated in the round, as did Facebook’s Kevin Weil, Calm’s Alexander Will, CRED’s Kunal Shah and Snapdeal co-founders Kunal Bahl and Rohit Bansal.
The one-and-a-half-year-old start-up, which closed its Series A funding round in October in 2015 and has raised $87 million to date, is now valued in between $275 million to $300 million, an individual familiar with the matter told TechCrunch.
Numerous countless Indians came online in the last decade, however many merchants– think about area stores– are still offline in the nation. They continue to rely on long note pads to keep a log of their monetary deals. The procedure is likewise time-consuming and susceptible to mistakes, which might lead to substantial losses.
Khatabook, in addition to a handful of established and young players in the country, is trying to change that by using apps to allow merchants to digitize their accounting and also accept payments. Today more than 8 million merchants from over 700 districts actively
use Khatabook, its co-founder and president Ravish Naresh informed TechCrunch in an interview.”We invested the majority of last year growing our user base,”said Naresh. Which bet has worked for Khatabook, which today takes on Lightspeed-backed OkCredit, Ribbit Capital-backed BharatPe, Walmart’s PhonePe and Paytm, all of which have actually raised more cash than Khatabook.
The Khatabook group poses for a photo (Khatabook) According to mobile insight company AppAnnie, Khatabook had more than 910,000 daily active users as of earlier this month, ahead of Paytm’s merchant app, which is utilized each day by about 520,000 users, OkCredit with 352,000 users,
PhonePe with 231,000 users and BharatPe, with some 120,000 users. All of these firms have seen a decrease in their everyday active users base in current months as India imposed a stay-at-home order for all its citizens and shut most stores and public locations. Many of the abovementioned companies have only seen about 10-20% decline in their usage, according to AppAnnie.
Because the majority of Khatabook’s merchants stay in smaller sized cities and towns that are away from large cities and operate in supermarket or work in agritech– areas that are excused from New Delhi’s stay-at-home orders, they have been less affected by the coronavirus break out, stated Naresh.
Naresh declined to talk about AppAnnie’s data, but stated merchants on the platform were including $200 million worth of deals on the Khatabook app every day.
In a statement, Kabir Narang, a general partner at B Capital who also co-heads the firm’s Asia organisation, stated, “we anticipate the variety of digitally advanced MSMEs to double over the next 3 to 5 years. Small and medium-sized organisations will drive the Indian economy in the period of COVID-19 and they need digital tools to make their services efficient and to grow.”
Khatabook will deploy the new capital to broaden the size of its technology group as it aims to develop more products. One such item could be online lending for these merchants, Naresh stated, with some others checking out to resolve other challenges these small businesses face.
Amit Jain, former head of Uber in India and now a partner at Sequoia Capital, said more than 50 % of these small businesses are yet to get online. According to government data, there are more than 60 million micro-sized and little organisations in India.
India’s payments market could reach $1 trillion by 2023, according to a report by Credit Suisse. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.