Exclusive: PagarBook’s valuation crosses $100 Mn after fresh funding

Employee management app PagarBook has received fresh investment from new investors with a two-fold jump in its valuation within six months.

The Bengaluru-based company has allotted 1,213 Series A3 preferred shares at an issuance price of Rs 263,719.46 to MV Opportunities India(MVO), A$AP Capital, AngelList and PA Fund I which seems to be an SPV floated by Silicon Valley Bank (SVB) to raise Rs 32 crore or $4.4 million. 

MVO and SVB have infused $2 million each while A$AP and AngelList have put in the remaining amount, regulatory filings show.

It’s worth noting that the price per share has shot up 2.04X since December 2020 when it raised $15 million in its Series A round at Rs 129,460.92 per share. 

Fintrackr’s estimates show that PagarBook’s valuation has surged 2X from $50 million in Series A round to a little over $101 million in this round.

According to Entrackr’s sources, this is a top-up round for PagarBook which has materialised after its Series A round. Sources also said that PagarBook is in early talks with several investors to raise a Series B round. 

Fintrackr has also decoded the company’s current shareholding structure and the co-founders Adarsh Kumar and Rupesh Kumar Mishra have 19.08% and 15.61% stake respectively in the company. The third co-founder Arya Adarsha Gautam holds 2.61% stake.

PagarBook’s early backer Sequoia Capital is the largest stakeholder in the company with 34.8% stake followed by India Quotient with 15.96%.

The complete shareholding of PagarBook can be seen below.

Launched in early 2020, PagarBook provides software for attendance, salaries, advance payments and payroll management through a mobile and desktop app. The app is available across 12 languages and has a presence in over 650 districts in India. The company claims to have more than a million monthly active SMEs on the platform and it manages roughly 2-2.5% of the whole SME workforce. 

While PagarBook remained the sole player in the staff management space for initial few months, the entry of Khatabook (Pagarkhata) and OkCredit (OkStaff) in its forte has made the competition more intense. 

Sequoia Capital-backed Khatabook is also in talks to raise a $100 million round. Entrackr had exclusively reported the development on May 28.

Update: The previous version of the story mistakenly mentioned Moneta Ventures as an investor in Pagarbook in place of MV Opportunities India. We have updated the post. The error is regretted.