Khatabook, a digital credit ledger startup has raised $60 million in a fresh equity round. This Series B funding round was led by B Capital Group and witnessed contribution from Sequoia Capital, Tencent, GGV Capital, RTP Capital and multiple angel investors. The total investment post this round stands at $87 million in last 2 years for the startup.
According to sources, Khatabook now values somewhere between $275 million and $300 million. 4 IIT Bombay Alumnus started Khatabook in 2018 with a vision of transforming India’s small shops. The startup is now the biggest player in digitizing small businesses. They allow their users to record the daily transactions and it also sends a reminder message to user’s creditors via text message or messaging platforms.
The idea for the company is to invest the raised amount in building financial services products. B Capital is an investment firm started by Facebook co-founder, Eduardo Saverin. Kabir Narang, B Capital Group General Partner and Co-head of Asia said,
“We are impressed by its (Khatabook’s) product suite as it is addressing the critical pain points of merchants across credit tracking, revenue leakage and collections. We expect the number of digitally sophisticated MSMEs to double over the next three to five years,”
Khatabook was also part of Sequoia Capital’s Surge program in 2019. Unilever Ventures and Rocketship VC are new additions on the cap table of the company as well. The startup raised $25 million in its Series A round of funding from investors like GGV Capital, Tencent, Sequoia and other angel investors.
The company plans to work with government and other financial institutions to strengthen their market leadership and help MSMEs become more efficient and competitive. Khatabook is doing wonders with its product as it had a userbase of over 8 million merchants in 11 different languages within one year.