Khatabook, a startup that’s serving to small companies in India file monetary transactions digitally and settle for funds on-line with an app, has raised $60 million in a brand new financing spherical because it seems to achieve extra floor on the planet’s second most populous nation.
The new financing spherical, Series B, was led by Facebook co-founder Eduardo Saverin’s B Capital. A spread of different new and current traders, together with Sequoia India, Partners of DST Global, Tencent, GGV Capital, RTP Global, Hummingbird Ventures, Falcon Edge Capital, Rocketship.vc and Unilever Ventures, additionally participated within the spherical, 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 startup, which closed its Series A financing spherical in October final yr and has raised $87 million thus far, is now valued between $275 million to $300 million, an individual conversant in the matter instructed TechCrunch.
Hundreds of tens of millions of Indians got here on-line within the final decade, however most retailers — consider neighborhood shops — are nonetheless offline within the nation. They proceed to depend on lengthy notebooks to maintain a log of their monetary transactions. The course of can also be time-consuming and susceptible to errors, which might end in substantial losses.
Khatabook, in addition to a handful of younger and established gamers within the nation, is trying to alter that by utilizing apps to permit retailers to digitize their bookkeeping and in addition settle for funds.
Today greater than eight million retailers from over 700 districts actively use Khatabook, its co-founder and chief govt Ravish Naresh instructed TechCrunch in an interview.
“We spent most of final yr rising our person base,” stated Naresh. And that wager has labored for Khatabook, which right now competes with Lightspeed -backed OkayCredit, Ribbit Capital-backed BharatPe, Walmart’s PhonePe and Paytm, all of which have raised more cash than Khatabook.
According to cellular perception agency AppAnnie, Khatabook had greater than 910,000 every day lively customers as of earlier this month, forward of Paytm’s service provider app, which is used every day by about 520,000 customers, OkayCredit with 352,000 customers, PhonePe with 231,000 customers and BharatPe, with some 120,000 customers.
All of those companies have seen a decline of their every day lively customers base in current months as India enforced a stay-at-home order for all its residents and shut most shops and public locations. But many of the aforementioned companies have solely seen about 10-20% decline of their utilization, in keeping with AppAnnie.
Because most of Khatabook’s retailers keep in smaller cities and cities which can be away from giant cities and function in grocery shops or work in agritech — areas which can be exempted from New Delhi’s stay-at-home orders, they’ve been much less impacted by the coronavirus outbreak, stated Naresh.
Naresh declined to touch upon AppAnnie’s information, however stated retailers on the platform had been including $200 million value of transactions on the Khatabook app every day.
In a press release, Kabir Narang, a common accomplice at B Capital who additionally co-heads the agency’s Asia enterprise, stated, “we count on the variety of digitally subtle MSMEs to double over the following three to 5 years. Small and medium-sized companies will drive the Indian financial system within the period of COVID-19 and so they want digital instruments to make their companies environment friendly and to develop.”
Khatabook will deploy the brand new capital to increase the scale of its expertise staff because it seems to construct extra merchandise. One such product might be on-line lending for these retailers, Naresh stated, with some others exploring to resolve different challenges these small companies face.
Amit Jain, former head of Uber in India and now a accomplice at Sequoia Capital, stated greater than 50% of those small companies are but to get on-line. According to authorities information, there are greater than 60 million small and micro-sized companies in India.
India’s funds market might attain $1 trillion by 2023, in keeping with a report by Credit Suisse .
Mobile funds companies in India at the moment are scrambling to generate profits