Khatabook, which makes accounting and business record-keeping simple for small merchants and entrepreneurs, has raked in $25 million in a Series A round of funding from GGV Capital, Sequoia India, Tencent and Partners of DST Global.
The funding round also witnessed the participation from marquee investors which includes Amrish Rau, Anand Chandrasekharan, Deep Nishar, Gokul Rajaram, and Kunal Shah.
With the infusion of fresh capital, the total funds raised by the Bengaluru-based startup has reached $29 million till date.
Entrackr had exclusively reported about Tencent and GGV Capital investment in Khatabook. However, the deal size is quite smaller than our reportage of the firm raising $75 million Series B round.
Khatabook is a cash management tool, specially designed for tier II, tier III and beyond, used by 500 different types of businesses. The idea, apparently transforming businesses of micro SMEs as they are shifting the transaction record from manual to digital.
The services it provides to businesses comprise of data storage, data tracking, report & analytics, and remark writing facility.
Khatabook has already expanded its footprint across 3,000 cities of India and is being used in Pakistan, Nepal, and Bangladesh as well.
Available in more than nine local languages, Khatabook attributes the hypergrowth to word-of-mouth marketing amongst the merchant communities.
Around 30 days back, the startup had claimed that its merchant base grew by 12X to 1.8 million between March to July and the transaction value also soared from $600 million to $2.3 billion in these four months.
With 2.9 million monthly active businesses on the platform, the Ravish Naresh-led company is aiming to reach 25 million Indian merchants in the next 12 months.
This development was first reported by ET.