Khatabook, a Bangalore-based startup, said on Tuesday it has raised $25 million in a new financing round. The Series A round for the startup was funded by GGV Capital, Partners of DST Global, RTP Global, Sequoia India, Tencent, and Y Combinator.
Prominent investors like Kunal Shah, Founder, Cred; Kunal Bahl, Co-founder, Snapdeal; Jitendra Gupta, Head – LazyPay; and Anand Chandrasekharan, ex-Facebook; were among others who participated in this round of funding. With this funding, the total funding raised by KhataBook will be $29 million since its inception in December 2018.
Khatabook operates an eponymous Android app that allows micro, small and medium-sized businesses to keep a digital log of their financial transactions and accept payments online. The app, which was launched on Google Play Store in December last year, has amassed 5 million merchants from more than 3,000 cities, towns, and villages in India.
“We are excited to partner with global investors to accelerate our vision of building the operating system/ technology plumbing for India’s small merchants and businesses,” said CEO and co-founder, Ravish Naresh.
Hans Tung, Managing Partner, GGV Capital, said: “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.”
The team claims to be growing 20% every week and has use cases with more than 500 types of businesses. The team plans to launch other products for MSMEs in the next few months and also aims to reach over 25 million Indian merchants in the next 12 months.
Khatabook was originally built by Vaibhav Kalpe. Kyte Technologies acquired the company in October 2018, with Kalpe joining the firm. Kyte Technologies was founded by Ravish Naresh, Jaideep Poonia, Dhanesh Kumar and Ashish Sonone.
The app is available in 11 languages and also has a presence in Nepal, Pakistan, and Bangladesh. The Khatabook team plans to launch other products for micro small and medium enterprises in the coming months, according to the press statement. The app is now used by businesses such as Kirana stores, mobile recharge shops, garment dealers, restaurants and travel agents, it added.
Khatabook was one of the 17 startups from the first cohort of Surge, Sequoia India’s rapid accelerator program for early-stage startups in India and Southeast Asia. Y Combinator and Info Edge also are investors in Khatabook.