Khatabook - Reducing the Burden of Accounting

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In our haphazard daily life, we tend to get busy in several things and forget about zero hours for payments and maintaining a log of all the financial transactions, and it sometimes may seem very hectic. Today, we have an option to rely on effective business management software as it’ll help address us through reminders about our due dates and also very effectively manages, the digital logbook of online transactions we make.

With the use of business management application software, like Khatabook, you don't need to worry about forgetting the due dates of payments to be made. Khatabook reminds you through WhatsApp or SMS when the money is due to be paid or collected.

Khatabook - Company Highlights

Startup Name Khatabook
Parent Company Kyte Technologies
Headquarters Bangalore, Karnataka, India
Industry Fintech
Founded 2018
Founders Ashish Sonone, Dhanesh Kumar, Vaibhav Kalpe, Jaideep Poonia, and Ravish Naresh
CEO Ravish Naresh
Area Served India
Website www.khatabook.com

Khatabook - About and How it Works?
Khatabook - Logo and its Meaning
Khatabook - Recent News
Khatabook - Founder and History
Khatabook - Mission
Khatabook - Team
Khatabook - Business Model
Khatabook - Revenue and Growth
Khatabook - Funding and Investors
Khatabook - Competitors
Khatabook - Challenges Faced
Khatabook - Future Plans
Khatabook - FAQs

Khatabook - About and How it Works?

Founded in October 2018, Khatabook is the world's fastest-growing SaaS company. It has become India's leading business management app for MSMEs with 20M+ downloads in a remarkably short period of time. It operates the Android-based Khatabook app that enables companies to keep a digital log of their financial transactions and accept payments online.

This Bangalore-based mobile app service shares WhatsApp and SMS reminders to users when money is due to be paid or collected. Khatabook enables micro, small and medium merchants to track business transactions safely and securely. The app is available in over 13 vernacular languages catering to a diverse audience in the country.

It manages our Business & Personal ledgers on our phone and computer and reminds us through SMS or WhatsApp about our due dates which can be called an asset or boon due to digitalization of our 'khatabook'.

The app has a free ‘Payment Reminders’ feature. With this feature, an automatic SMS is sent to your customers every time a transaction is recorded. This digital ledger app is safe and secure to use. KhataBook lets you keep all details of credit-debit for any number of customers across multiple businesses ready and handy on your phone. In short, this app lets merchants do stress-free business.

Khatabook - Logo and its Meaning

Khatabook's company logo very much signifies what the company is all about. Khatabook maintains a digital record of all the transactions we make, something which our actual 'Khatabook'(the diary in which we maintain our financial record) does.

Khatabook's Company Logo
Khatabook's Company Logo

Khatabook - Recent News

  • With around US$84 million in funding, Khatabook is the early market leader for digital bookkeeping in India, ahead of rivals such as OkCredit and Vyapar
  • India’s Khatabook raises $60 million to help merchants digitize bookkeeping and accept payments online

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Khatabook - Founder and History

Founded by Ashish Sonone, Dhanesh Kumar, Vaibhav Kalpe (not serving now), Jaideep Poonia, and Ravish Naresh in 2018, Khatabook helps small business owners to manage their business and personal credits.

Founders of Khatabook
Founders of Khatabook

This digital ledger app automatically sends a payment reminder to its customers, facilitating customers to keep track of all their transactions and payments.

The story goes back to 2016 when Ravish Naresh, along with his team of college friends, started a digital spend manager app, Kyte.ai. The app helped users understand their expense patterns using their SMS alerts. Kyte had initial good traction, but it did not reach the expected growth scale. Also, the team realized all their users were based out of metropolitan cities.

On researching, they found that first-time online users did not deal with digital transactions, and they still rely on traditional khata or ledger books. As per Ravish, they wanted to build something that people want and then try to build a business around it.

That is when the idea for KhataBook developed, and they started work on a simple cash management app and named it KhataBook.

Khatabook - Mission

The mission statement of Khatabook says, "empowering udhari khata(book-keeping)".

"Started with a vision of transforming India's small shops, today we are the biggest player in the small business segment digitizing a sector that forms the backbone of our economy. We are looking to work closely with the government and financial institutions to strengthen our market leadership and help MSMEs increase their income while making them more efficient and competitive," Ravish Naresh, chief executive of Khatabook, said.

Khatabook - Team

  • Ravish Naresh - Co-Founder and CEO
  • Dhanesh Kumar, Vaibhav Kalpe, Dhanesh Kumar - Co-Founders
  • Harish Padmanabhan - Senior Growth Manager
  • Khushal Melana - Senior Software Engineer
  • Yogeshwar Nama -  Sales Associate
  • Gaurav Lahoti - VP Engineering

Khatabook - Business Model

Khatabook is a Bangalore based startup founded on October 2018. Khatabook is a mobile app which help small merchants to digitize their accounting and credit balance recording. Basically Khatabook is helping to reduce burden of maintaining and accounting paper account books. It is like khata in your pocket. Their business model "Bharat" is for India coming online.

Its 100% free to use and safe and secure for all types of businesses with which shop owners can record credit(Jama) and debit(Udhaar) of customers. KhataBook has no revenue source at present. Naresh says their focus is now on developing the app to provide a complete financial solution to small businesses. The start-up has plans to bring a host of new features on to the platform and the next in line is UPI payment.


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Khatabook - Revenue and Growth

KhataBook's estimated annual revenue is currently $21.3M per year and estimated revenue per employee is $145,000. For several months now, the startup has been seeing 20% growth each week, a spokesperson said. In just six months, the app has helped businesses recover $5 billion in previously unpaid credits, Naresh claimed. KhataBook says it is growing 20 percent every week and has use cases with more than 500 types of businesses.

Khatabook today has a monthly active user base of 8+ million with 20+ Million registered users. Before the lockdown, the growth had an excellent trajectory, which did take a hit during the lockdown in line with other external factors. With lockdown relaxation, the company started reviving the business at a steady pace. The revival has been faster with users in tier-2 and tier-3 cities of India.

As a very relevant offering for merchants in the pandemic, they also launched MyStore app to enable them to take their stores online in 15 seconds and continue doing business through their preferred communication channels. Within a month over from the launch, more than 2.5 million merchants across India have installed MyStore. Khatabook also initiated work-from-home active, 24/7 call centre support for merchants.

Khatabook - Funding and Investors

Khatabook has raised a total of $111.5M in funding over 5 rounds. Their latest funding was raised on May 20, 2020 from a Series B round. Khatabook is funded by 29 investors. Tencent Holdings and Better Capital are the most recent investors.

Date Round Amount Lead Investors
May 20, 2020 Series B $60M B Capital Group
May 20, 2020 Series B - -
Oct 1, 2019 Series A $25M -
Oct 1, 2019 Series A $25M -
Apr 19, 2019 Seed Round $1.5M Surge

Khatabook - Competitors

The top competitors in KhataBook's competitive set are OkCredit, BharatPe, Instamojo, Simply Vyapar Apps Pvt. Ltd., PayMate, Razorpay, Obopay, Paytm and Working Papers.

Khatabook - Challenges Faced

In the initial days of Khatabook, like any other new startup faced short of money. According to the CEO, after they acquired Khatabook, they realized that then they needed to look at some serious funding options. In the series A phase, they were struggling a bit with the funding. The growth hit them fast, so the seed round took place in 5 bridges. It was the highest in the history of funding for Sequoia.

"Well, the struggles were mainly money-related. We knew we were working on something important and kept going with it. Often it was difficult to imagine the future of our initiatives with no funding, but perseverance is what got us where we are today," said Ravish Naresh, the CEO and Co-Fonder of Khatabook.

He also said that the adoption of their product was not only dependent on the app's visibility and convenience but also on user education, not just for the app but also for using digital technology in general. The biggest hurdle was to persuade offline shopkeepers to come online and train them for digital transactions. Switching away from the convention is understandably tricky and daunting for merchants who mainly have offline workflows. Persuading traditional enterprises to embrace the digital still remains a crucial challenge for them.

“It is important to build something that people want and then try to build a business around it, and that is exactly what the team did.” says Ravish.

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Khatabook - Future Plans

The company has plan to augment their service portfolio and drive two- to three-fold growth in business by providing more relevant solutions and value to the users. Remaining committed to India's MSME segment, Khatabook will be adding services to streamline and simplify business processes for the merchants.

The start-up has plans to bring a host of new features on to the platform and the next in line is UPI payment.

"Committing to a goal is essential for business directions and decisions. One thing that pandemic has taught us is that we need to think through the most unlikely scenario and make sure we are relevant in all possible scenarios or are agile enough to change our direction as per the need of the hour," says Ravish.

Khatabook - FAQs

Which country owns Khatabook?

Khatabook is an Indian company.

How does Khatabook make money?

KhataBook has no revenue source at present. Naresh says their focus is now on developing the app to provide a complete financial solution to small businesses.

What is the use of Khatabook?

Khatabook app that enables companies to keep a digital log of their financial transactions and accept payments online.

Who founded Khatabook?

Khatabook was founded by Ashish Sonone, Dhanesh Kumar, Vaibhav Kalpe (not serving now), Jaideep Poonia, and Ravish Naresh in 2018.

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