Imagine a world where the age-old tradition of maintaining paper-based ledgers, known as “Khatas”, gives way to a seamless digital experience. This transformation is precisely what Khatabook has set out to achieve. Born from a simple idea to solve an age-old problem, let’s discover Khatabook valuation, funding and the tale of shareholders it has!
Khatabook Company Profile
Khatabook is an application designed to simplify and digitize financial record-keeping, primarily targeting small and medium-sized businesses (SMBs) and merchants, especially in India.
The app serves as a digital replacement for traditional paper-based ledgers, commonly referred to as “Khatas” in India. The tale begins in 2018, when four visionary minds- Ravish Naresh (CEO), Jaideep Poonia, Dhanesh Kumar, and Ashish Sonone- noticed a common dilemma faced by countless merchants and SMBs across India. It is headquartered in Bengaluru, Karnataka.
The beauty of Khatabook lay not just in its innovation but in its ability to empower businesses. From the roadside chaiwala (tea seller) to the corner grocery store, with the ability to enter the digital age seamlessly.
Note: We have thoroughly covered the “Khatabook business model.” You can visit the article for more information.
Some key points
- Khatabook serves B2B (Business-to-Business), B2C (Business-to-Consumer), and offers a SaaS based platform. Khatabook’s parent organization is Kyte Technologies Inc.
- Being a digital platform, it didn’t rely on serving specific cities in the traditional sense as physical businesses do. It was accessible to users as long as they had access to the internet and a compatible device.
- Khatabook gained prominence relatively quickly after its launch in 2018.
- Its innovative approach to digitizing financial record-keeping and its mission to empower SMBs with digital tools garnered significant attention and recognition within the Indian startup ecosystem.
- By 2020, Khatabook was already a well-recognized and respected name in the Indian fintech space.
- It has received numerous awards, accolades, and media coverage highlighting its impact and innovation.
- Khatabook reported a revenue of $31.4 million in 2023.
Khatabook’s Valuation
Khatabook reportedly raised $186.5 million over 7 rounds and Khatabook valuation as per 2020 was recorded to be $300 million in May.
The latest valuation of Khatabook was recorded to be $600 million on Aug 24, 2021. In 2020, Khatabook first made headlines, capturing the imagination of investors and industry insiders alike. The valuation crossed the coveted million-dollar mark, signifying that Khatabook was no longer just a startup but a financial technology giant.
The unicorn status marked only the beginning of Khatabook’s journey in the world of funding.
The app empowered millions of SMBs across India, providing them with digital tools to manage their finances efficiently, access credit, and make informed business decisions.
Khatabook’s Funding & Shareholders
The company has secured several rounds of funding, propelling it to unicorn status. Notable investors include Sequoia Capital, Lightspeed Venture Partners, and Ribbit Capital, among others. The most recent funding rounds have allowed Khatabook to expand its product offerings and reach a wider user base.
| YEAR | SERIES ROUND | MONEY GROWTH | NAME OF INVESTORS |
| August 22, 2018 | Pre Seed round | (undisclosed) | (undisclosed) |
| April 19, 2019 | Seed Round | $1.5 million | Surge |
| October 1, 2019 | Series A | $25 million | (undisclosed) |
| May 20, 2020 | Series B | $60 million | B Capital Group |
| August 24, 2021 | Series C | $100 million | Moore Strategic Ventures, Tribe Capital |
Khatabook reportedly raised a total of $186.5 million over 5 funding rounds and the latest funding was done on August 24, 2021 with a Series C round.
- Sequoia Capital, one of the most esteemed venture capital firms globally, led the initial funding round in 2020, catapulting Khatabook into the coveted unicorn club. The initial investment, which valued the company at over a billion dollars, was a resounding vote of confidence in Khatabook’s mission- to revolutionize financial management for India’s small and medium-sized businesses.
- Over the years, Khatabook has continued to attract substantial investments, painting a picture of remarkable growth and potential. Lightspeed Venture Partners joined the Khatabook journey with substantial backing, further solidifying the company’s position as a fintech heavyweight.
- Ribbit Capital, known for its investments in disruptive ventures, also lent its support, recognizing Khatabook’s transformative impact on the Indian SMB landscape.
The Shareholders
While the founding team, led by Ravish Naresh, retains a significant stake in the company, the influx of venture capital has naturally led to a diversification of shareholders. Khatabook is a privately held company, and the ownership details of private companies are typically not publicly available in a comprehensive manner.
Conclusion
In the span of a few short years, Khatabook has gone from a startup with a novel idea to a financial technology giant. Its valuation, funding success, and diverse shareholder base are a testament to the innovation and dedication of its founders and team. Khatabook’s journey serves as an inspiring example of how technology can transform traditional industries and improve the lives of countless individuals and businesses.
Khatabook isn’t merely a mobile app, it’s a catalyst for financial transformation. It’s a promise to the power of innovation in simplifying age-old practices and empowering the backbone of India’s economy – its small and medium-sized businesses.
