We have closed a $60 Million Series B round of funding led by B Capital Group with participation from new and existing investors, including Sequoia India, Partners of DST Global, Tencent, GGV, RTP Global, Hummingbird Ventures, Falcon Edge Capital, Rocketship.vc, and Unilever Ventures. Angel investors Kevin Weil, Alexander Will, Kunal Shah, Kunal Bahl, and Rohit Bansal also participated.
The latest funding will allow us to ramp up products and services offerings for India’s merchants as we continue to build the technology solutions around financial services and a large merchant-focused distribution platform. We are committed to helping merchants manage their credit, creating transparency in cash flow, and increasing trust with end consumers. Kirana, small family-owned shops found across India, play a crucial role in the economy. Khatabook gives this ecosystem the digital tools they need to support their businesses, empowering micro, small and medium enterprises at a critical time - as the country undergoes a major digital transformation amidst COVID-19.
Kabir Narang, B Capital Group General Partner & Co-Head of Asia, said, “B Capital is excited to partner with Khatabook, which is enabling the 60M merchants to go digital. We have been tracking the company and are impressed by its product suite as it is addressing the critical pain points of merchants across credit tracking, revenue leakage, and collections. We expect the number of digitally sophisticated MSMEs to double over the next three to five years. Small and medium-sized businesses will drive the Indian economy in the era of COVID-19, and they need digital tools to make their businesses efficient and to grow.”
Amit Jain, Managing Director, Sequoia Capital (India) Singapore, added, “We are very excited to continue our partnership with Khatabook, which started early through the Surge program. Ravish, and the team has the potential to have a massive impact on India’s 50-60M strong MSME market. Less than 50% of this sector currently leverages the advantages of technology for business – something that is critical today for businesses to survive and thrive. We look forward to helping Khatabook build an enduring company, as they continue to serve millions of Indian MSMEs through the rapidly accelerating power of digitization.”