Accounting services provider Khatabook, Digital India’s digital Ledger cash book has received whopping $75M (about Rs503crore) in a funding round led by new investors B Capital Group along with their existing backers Sequoia Capital and Tencent companies.
This initiative kicked into Ravish Naresh’s mind while they built Kyte.ai, a digital spend manager app which would send SMS alerts to understand their expense pattern. The Kyte team realised that small shopkeepers used khata books or ledger book instead of dealing with digital transactions from their customers in rural areas. Thus the Kyte.ai team decided to change the financial lifestyle of these shopowners by helping them manage their transactions and track repayments. They started with this business idea in 2018 and within some months time got remarkable support from its angel investors like Kunal Bahl, CEO of Snapdeal, Akshay Kothari, COO of Notion company and CEO of CRED Kunal Shah to name among the many.
Presently, over Rs14 lakh crore transactions recorded over their exclusive app and over 2 crore businesses using it spread over 10,000 cities and towns in India, the Khata book app is making a significant impact on helping small businesses grow. Khatabook provides free reminders feature that is an automatic SMS generated every time a customer does a transaction. This feature has ensured a 3X faster return on credits for their users. It is the No1 safe, secure free app for handling the udhaar or len-den. It has great features like sending WhatsApp payment reminders to customers, managing multiple shops within one app itself, and also using one khatabook account on multiple phones with option to download customers pdf report which helps maintain the formality of traditional ledger book.
This digital cash book is completely free to use and Hisab Kitab done right from your pockets. Revolutionizing the B2B startup stories with this one, its one of the best startup ideas to help other businesses get rid of an old ledger book, excel sheet and calculator. It has made the app so user-friendly with simple and easy to use interface to manage the Udhar khata and with easy backup and restores option. This will ensure the businessmen to spend more time with their beloved family and friends.
In January 2020, the firm co-led a $105 million investment round in mobility startup Bounce, while also participating in B2B packaging materials marketplace Bizongo’s $30 million Series C funding round. The investment firm is also in the running to pick up stake in online sports fantasy platform Dream11. However, that deal has yet to be finalized.
Not only does Khata book have a 1.1 million daily active users which are way higher than its competitors like OKCredits with 470,000 and Paytm For Business has 700,000 as of February. It is trying to apply for non-banking finance company license as it explores lending as a new revenue stream in this decade.
With a vision in mind that every merchant has the right to stress-free business, Khata book team has reformed the way of optimizing the small businesses revenue and in turn, satisfied their consumers simultaneously. This app is favourable not only to a grocery or general stores shop but also pragmatic to shopowners like be it the bakery, paan or medical stores from rural areas as it offers language support in Hindi and English.
Thus, this Bengaluru-based startup has hit upon the right winning idea which aims to reach 20 million active users by the end of 2020. Going forward it would be exciting to see how it keeps up with its competitors like Instamojo Credit book and maintain its mark in digital India revolution.