Khatabook, a mobile app that enables small and medium enterprises (SMEs) track business transactions, has raised a $25 million ( ₹178 crore) Series A round from GGV Capital, partners of DST Global, RTP Ventures, Sequoia India, Tencent and Y Combinator.
In a press statement on Tuesday, it said that more than 20 angel investors, including Amrish Rau, Anand Chandrasekharan, Deep Nishar, Gokul Rajaram, Jitendra Gupta, Kunal Bahl, and Kunal Shah, also participated in the round.
With this round, Khatabook has raised $29 million since its inception in December 2018. It was part of Surge, Sequoia India’s accelerator programme for early-stage startups. Y Combinator and Info Edge also invested in the company.
Khatabook said it has over 2.9 million active businesses and over five million registered users. The app is available in 11 Indian languages, besides it is used by merchants in Nepal, Pakistan and Bangladesh, the statement added. Its client base include kirana stores, mobile recharge shops, garment dealers, restaurants and travel agents.
The Khatabook team plans to launch other products for micro, small and medium enterprises, or MSMEs, in the next few months.
“India is at an inflection point with dramatically low data costs leading to strong adoption of smartphones, especially among its millions of merchants. At Khatabook, we have taken early but significant steps towards leveraging this trend to digitize India’s shopkeepers. For most of our merchants, we are the first business software they’ve used in their entire life. And we will continue to build more India-first innovations to further enable the growth of what is still a largely untapped sector," Ravish Naresh, chief executive officer and co-founder, Khatabook, said in a statement.