Khatabook raises $100mn from a slew of investors

FINTECH CO

Khatabook raises $100mn from a slew of investors

TIMES NEWS NETWORK

Bengaluru:25.08.2021

Fintech startup Khatabook has closed a $100 million Series C funding round, valuing the firm close to $600 million. The round was led by US-based VC firms Tribe Capital and Moore Strategic Ventures (MSV). Other investors in this oversubscribed round were Alkeon Capital, and existing investors B Capital Group, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, and Better Capital. There were individual investors too.

Khatakbook is buying back $10 million worth of ESOPs to reward employees, ex-employees, and early investors. 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.

Khatabook provides software to enable small businesses to do bookkeeping, and to accept online payments. It has apps like Pagarkhata for staff management, Cashbook for expense management, and it recently acquired Biz Analyst for insight-driven decision making and business management for Tally ERP9 users.The company’s revenue grew 150% in the last fiscal. Across all its software products, Khatabook has over 10 million monthly active users. The user base is across almost every district in India.

In the next phase of growth, the venture expects to provide financial services. It is looking for partnerships to enable this. The fresh funding will also help the startup to strengthen its talent base. Khatabook currently has 200 employees.

Ravish Naresh, CEO and co-founder of Khatabook, said, “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 digitallyenabled financial services for small businesses.”