Khatabook’s ₹454 Crore Funding to Empower Southern India’s MSMEs
Khatabook, a leading provider of digital ledger services for micro, small, and medium businesses, has secured ₹454 crore in a Series B funding round, co-led by B Capital Group, Sequoia India, and DST Partners. This significant investment will allow Khatabook to enhance its product offerings and develop advanced financial technology solutions tailored to India’s merchants, with a focus on building a large merchant-focused distribution platform.
The B2B fintech company currently serves over 7.5 million registered merchants across districts in Southern India. The Khatabook app is widely adopted among businesses such as grocery stores, mobile shops, pharmacies, bakeries, hardware stores, and more, thanks to its user-friendly interface and localization features that help merchants overcome language barriers.
“Khatabook is the largest player in the MSME segment in the country, with over 8 million monthly active users,” said Ravish Naresh, co-founder, and CEO of Khatabook. “We’re playing a crucial role in the digitization of MSMEs, helping them increase their incomes and improve efficiency. Merchants across Karnataka, Tamil Nadu, Telangana, Kerala, and other Southern states are using Khatabook to manage their businesses. We aim to collaborate closely with the government and financial institutions to further strengthen India’s MSMEs.”
Khatabook’s digital-first customer acquisition strategy, centered on the needs of small merchants, has driven its rapid market growth. The app is available in 11 languages and is used daily by over 1 million merchants, who collectively record ₹1,500 crore worth of transactions on the platform each day. This high level of engagement has also led to over 25% of active merchants joining through word-of-mouth and referrals.
Kabir Narang, General Partner & Co-Head of Asia at B Capital Group, expressed enthusiasm about the partnership, stating, “We are excited to partner with Khatabook, which is enabling India’s 6 crore merchants to go digital. We believe the number of digitally sophisticated MSMEs will double over the next three years. With the ongoing lockdown, merchants need reliable digital tools like Khatabook more than ever.”
The new funding will help Khatabook continue its mission to simplify business processes and empower merchants across India.