Khatabook raises $100 Mn in Series C at $600 Mn valuation

Bookkeeping and e-commerce enabling platform Khatabook on Tuesday said it has closed a $100 million Series C funding round at a valuation of close to $600 million. The round was led by US-based VC firms Tribe Capital and Moore Strategic Ventures. 

Alkeon Capital, Eduardo Saverin’s B Capital Group, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, and Better Capital also participated in the financing round. Apart from that, Balaji Srinivasan and a16z’s Sriram Krishnan participated as independent investors. 

Khatabook’s announcement confirms Entrackr’s break from May. We had exclusively reported that the company was in talks to raise $100 million at a valuation of $600 million. 

This is a 2X jump in the company’s valuation which had scooped up a $60 million Series B round at a valuation of $250-300 million last May. 

Khatabook said it has expanded its ESOP pool to $50 million and that it was buying back $10 million worth of ESOPs to acknowledge and reward employees, ex-employees, and early investors. Eligible employees of the company will be able to sell as much as 30% of their vested options. 

The company claimed it experienced a 150% year-on-year growth in FY21 and had more than 10 million monthly active users. It was a pre-revenue making company until FY20. According to Fintrackr, Khatabook had recorded a total expenditure of Rs 127 crore for the fiscal year ended on March 31, 2020, without any operating revenue.

In March, Khatabook had acquired Biz Analyst in a deal worth $10 million to bolster its e-commerce enablement product MyStore. 

In the e-commerce enablement space, Khatabook competes with the likes of Dot, Dukaan, OkCredit and Bikayi. Five months ago, Dot had raised $23.4 million in its Series B round led by the global payment gateway giant PayU which also saw participation from Google and InfoEdge.  

Bikayi is also raising a new round to the tune of $10-11 million. Entrackr had exclusively reported the development in May.