Tencent-backed Indian fintech startup Khatabook raises $100 million in series C...

Tencent-backed Indian fintech startup Khatabook raises $100 million in series C round- PingWest

Tencent-backed Indian fintech startup Khatabook raises $100 million in series C round

August 26, 2021 3:51 am

The Indian fintech startup Khatabook completed a $100 million financing led by Tribe Capital and Moore Strategic Ventures, bringing its valuation close to $600 million.

Details: The new round was oversubscribed and also saw participation of many existing investors including Sequoia Capital, Tencent, and Unilever Ventures.

Ravish Naresh, cofounder and CEO of the digital ledger app, said in the blog post that the company has become an “integral part” of micro, small and medium enterprises (MSME) in “almost every district in India” over the last 30 months, and obtained 10 million monthly active users 

Khatabook has expanded its product offerings in recent years to lure more businesses. The CEO said that the company is testing lending services with both retailers and distributors, and will officially launch the product at end of this year.

Except for the seed round, Tencent participated in every round of financing of the company. In May 2020, the startup secured the Series B financing round led by Facebook co-founder Eduardo Saverin’s B Capital, raising $60 million to help merchants digitize bookkeeping and accept payments online.

Context: Khatabook faces faces fierce competition from Alibaba-backed Paytm, which has launched ‘Business Khata’ for its 17 million merchant base. PhonePe, which claims to have 17.5 million merchants, is focussing on enabling hyperlocal commerce for this kirana (a small, usually family-owned shop selling groceries and other sundries) base and small businesses in the country.

The company owns three major services including bookkeeping app, digital online storefront for kiranas, and employee management solution Pagarkhata.

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