India’s startup online ledger KhataBook has raised a total of $25 million in its Series A Funding Round.
KhataBook is an accounting service provider for SMEs in India that allows shop owners to record credit (Jama) and debit (Udhar) customers’ transactions using its app. It is 100% free, safe and secure for all types of businesses to maintain their customers’ accounts.
Founded in October 2018 by Ravish Naresh, the 9-months old startup has raised $25 million in its recent funding round. The said Series A was led by GGV Capital, Partners of DST Global, Sequoia India, and Tencent, and others.
More than 20 angel investors also participated in the round including Amrish Rau, Anand Chandrasekharan, Kunal Shah, Kunal Bahl, Jitendra Gupta, Deep Nishar, Gokul Rajaram, Jitendra Gupta, and others.
The fund will be used to help businesses in India have digitalized financial transactions and online payments. “With this round of funding, we are looking to scale our tech team, build more products that can help SMEs manage their business, and focus strongly on security and other essential app”, said Ravish Naresh, CEO and Co-founder of KhataBook.
KhataBook claims that it has over 2.9 million active businesses and over 5 million registered users.
Shailendra Singh, Managing Director, Sequoia Capital (India) Singapore also commented on the funding saying, “KhataBook is having a huge impact on millions of Indian SME’s by becoming the system of record for their business dealings, the equivalent of a business ledger on their mobile phones.”
“In most cases, it’s their first mobile SaaS product and could well be their gateway to using other mobile applications. For example, mobile payments is now growing on KhataBook at a very rapid pace. Sequoia India couldn’t be more thrilled with the exponential growth the company has experienced since joining our Surge programme. The team is thrilled to double down on the investment in KhataBook and excited to support the Ravish and team on their journey,” Shailendra added.
Hans Tung, Managing Partner, GGV Capital, also commented saying, “We are excited to partner with Ravish and the founding team of KhataBook. As a second-time founder, he has demonstrated the ability to hire quality team members and identify areas for rapid growth – two essential components to scale. As a global investor, we seek out founders who understand the local market and respond to growth opportunities with speed and agility – we certainly see this with the KhataBook team.”
As Khatabook is growing and taking over India’s digitalization, Ravish said that they are focusing on ledger and is currently building out the software for the merchants. He also said that they want to build out billing and invoices, and platforms to help merchants file taxes.