Digital Ledger Khatabook valued at $600 Mn, raises $100 Mn Series C funding

Khatabook Digital Ledger

Khatabook, a startup that is helping merchants in India digitize their bookkeeping and accept online payments, has raised $100 million in a Series C funding round led by Tribe Capital and Moore Strategic Ventures (MSV). The round valued Khatabook at $600 million.

Other investors in this oversubscribed series C round were Alkeon Capital with continued participation from existing investor’s B Capital Group, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, and Better Capital. Independent investors Balaji Srinivasan and Sriram Krishnan also participated in the round.

With the new capital infusion, Khatabook will focus on financial services disbursement through its software that caters to around 10 million monthly active MSMEs. The startup also plans to speed up hiring to strengthen its engineering, product, design, analytics, and data science capabilities.

The start-up has expanded its ESOP pool to $ 50 million. It also bought $ 10 million worth of ESOPs to acknowledge and reward their employees, former employees and early investors. 

As per the company, its user base is in almost every district in the country. For the next phase, the start-up aims to focus on financial service disbursement through its tech platforms. By building financial services the funding will also help the platform by strengthening its skills base.

In addition to the flagship ledger application, Khatabook, the company is also focusing on the growth of its MSMEs software ecosystem through its other apps like Pagarkhata for staff management, Cashbook for expense management, and Biz Analyst for insight-driven decision making and business management for Tally ERP9 user base.

Khatabook, currently staffed with 200+ employees has noticed a 150 per cent annual growth in FY 20-21.

Ravish Naresh, CEO, and Co-founder, Khatabook, said, “The first phase of our journey was enabling digital transformation by building a tech ecosystem for Indian MSMEs. Now that we have created a widely accepted digital platform, the next step will be digitally-enabled financial services for small businesses. We are humbled by our investors’ confidence in our mission to help local businesses succeed by providing them with the right digital empowerment. On this milestone for the company, we would like to acknowledge the contribution of employees and early investors through the ESOP buyback plan.”

Arjun Sethi, Co-founder and Partner at Tribe Capital, said, “At Tribe, we believe strongly in the power of the network effect and how it can create moats for businesses. Khatabook has successfully built such a network by empowering this seismic shift among MSME businesses to move from paper to digital, literally. Despite its large early success and fast adoption to date, the company is early in its path to power the segment. We’re thrilled to be a part of its growth as it leverages its network to build additional scale.”

James McIntyre, Senior Managing Director & COO of MSV, said, “We are excited to partner with Khatabook as they continue to provide millions of small & medium sized retailers in India with outstanding software products. This round will accelerate the growth of technology products with which Khatabook’s customers can better serve Indian consumers. Additionally, this round enables the launch of a next-generation financial services platform to escalate the growth of those same customers.”


  • Online Team Asia Tech is a team of Journalists, Entrepreneurs, and Enthusiast Writers who contribute to the platform by bringing everyday stories, updates, opinions and insights from the Asian Startup Ecosystem.

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