India-based FinTech startup has raised $100m in Series C funding, at a valuation of $600m.
The round was led by Tribe Capital and Moore Strategic Ventures (MSV). Other investors in the oversubscribed Series C round included Alkeon Capital, with continued investment participation from internal investors B Capital Group, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, and Better Capital. In addition, Balaji Srinivasan and Sriram Krishnan participated as independent investors, among others.
The startup has also announced that it has now expanded its ESOP pool to $50m. It added it is also buying back $10m worth ESOPs to acknowledge and reward their 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 $50m.
With this fresh round of funds, Khatabook will focus on financial services disbursement through its software ecosystem catering to 10 million monthly active MSMEs. The startup plans to strengthen its engineering, product, design, analytics, and data science capabilities. The funding will also help Khatabook strengthen its talent base.
The two-year-old company provides digital tools and enables MSMEs to increase efficiency and recover dues. The company has also launched Pagarkhata, a staff and salary management platform. Earlier this year, it also acquired SaaS accounting software Biz Analyst, for $10m to offer premium value-added services like on-demand access to sales, purchase, inventory management, and more.
Besides the flagship ledger application, Khatabook, the company is also focused on the growth of its software ecosystem for MSMEs through its other apps – Pagarkhata for staff management, Cashbook for expense management, and recently acquired Biz Analyst for insight-driven decision making and business management for Tally ERP9 user base.
Commenting on the round, Khatabook CEO Ravish Naresh 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 digitally-enabled financial services for small businesses. We are humbled by our investors’ confidence in our mission to help local businesses succeed by providing them with the right digital empowerment.”
Khatabook said that it has witnessed 150% year-on-year revenue growth in the financial year 2020-2021 (FY’21). It’s available in 13 languages and claims to have more than 10 million monthly active users on its platform.
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