Khatabook provides a suite of products that let neighborhood merchants digitize bookkeeping, manage expenses and staff, and accept online payments. The Bangalore-headquartered startup has grown to employ over 200 people and reports more than 10 million monthly active users across nearly every zip code in India. The company has expanded its product offerings to deepen merchant engagement and is preparing to launch lending for retailers and distributors later this year, currently testing that product. Khatabook was hit by pandemic lockdowns but has since rebounded, with July noted as an all-time high month. As part of its employee incentives Khatabook is expanding its stock option pool to $50 million. Khatabook is an Indian startup offering a mobile app that helps small merchants digitize bookkeeping and accept payments online. The core product replaces paper notebooks with a digital ledger and payments interface to reduce errors and save time for neighborhood stores. The company reports more than 8 million merchants across over 700 districts using its app, and AppAnnie data cited in the article shows roughly 910,000 daily active users. Khatabook says merchants on the platform add about $200 million in transactions per day. The startup plans to deploy new capital to expand its technology team and build additional products, including exploring online lending for merchants. Financially, Khatabook raised $60 million in a Series B and has raised $87 million to date, with a reported valuation between $275 million and $300 million. Khatabook operates an eponymous Android app that helps micro, small and medium businesses digitize their financial ledgers and accept online payments. The app, launched on Google Play Store in December last year, supports 11 languages and has amassed 5 million merchants across more than 3,000 Indian cities, towns and villages. In August the app processed transactions exceeding $3 billion, and the company says it helped businesses recover $5 billion in previously unpaid credits over six months. Khatabook has been growing rapidly, reporting roughly 20% weekly growth and organic viral adoption without marketing; it has also seen users in Nepal, Pakistan and Bangladesh. The app is currently free for merchants; the company plans to build billing and invoicing features and introduce additional paid features to monetize its user base. Khatabook aims to add 25 million businesses in the next 12 months as it expands its product set and merchant reach.

Total raised

$185M

Funding rounds

3

Latest round

Series C

Latest activity

Aug 2021