Khatabook

An Android App enabling businesses to digitally record the credit they extend to customers, replacing the paper khata-bahi.

Sends periodic reminders to creditors on WhatsApp and through SMS and report generation, helping merchants recover receivables in time and take prompt business decisions.

Khatabook even developed its own QR code to process payments for the business owners on its platform.

Reached 5 Crore registered merchants across 12 languages in less than a year, using a digital-first approach designed for India's merchants.

Utility solutions built for the nation's 6.3 crore-strong MSME sector.

A cash management tool, specially designed for tier II, tier III and beyond, used by different types of businesses to digitize their khata-bahi credit records.

Merchants can reach the company directly by phone or email; Khatabook states it is always available to address user needs.

Maintains the merchant relationship through automated, always-on features -- periodic payment reminders sent via WhatsApp and SMS plus auto-generated reports -- rather than manual account management.

The relationship is largely self-service: a digital-first product built around the needs of Bharat's merchants let Khatabook scale to 5 crore registered merchants across 12 languages in under a year without assisted onboarding.

The app is available in 11+ languages and also has a presence in Nepal, Pakistan and Bangladesh.

Used to send periodic payment reminders to creditors.

Khatabook attributes the hypergrowth to word-of-mouth marketing amongst the merchant communities.

Extensive marketing spends across various media platforms using a mix of television commercials (TVCs), digital advertising and social media marketing; ad spend hit Rs 94.4 crore in FY20.

Operates as a bookkeeping app and lending platform, extending credit to merchants as a core, scaling line of business.

Builds and maintains additional standalone apps for SMEs beyond the core ledger product, including MyStore and Pagarkhata for staff management.

Positions its app as a distribution platform to carry other financial services and products tailored to India's merchants, beyond its own bookkeeping tool.

Series A funding was earmarked specifically to scale up Khatabook's technology team and build new products for merchants.

A $100 million Series C round left Khatabook with enough cash reserves to fund aggressive scale-up through FY22.

Leadership bench was strengthened by absorbing the entire Biz Analyst team, including its three co-founders, after the acquisition.

A base of more than 10 million monthly active users on the bookkeeping app gives Khatabook a built-in distribution network for cross-selling new products.

Khatabook was one of the 17 startups from the first cohort of Surge, Sequoia India's rapid accelerator programme for early-stage startups in India and Southeast Asia.

Khatabook announced a strategic partnership with cricketer Mahendra Singh Dhoni, who invested in the company and became its brand ambassador.

Acquired SaaS business management app Biz Analyst for $10 Mn in cash and equity to extend into analytics, sales force automation and digital invoicing for merchants.

Main source of revenue, which grew 4.8X to Rs 58 crore in FY22; 77.5% of operating revenue comes from export services provided to parent company Kyte Technologies Inc.

Collection from utility solutions such as convenience fees and financial services increased 2.6X to Rs 13 crore in FY22.

Betting big on its lending vertical, likely to be the anchor revenue-generating source for Khatabook in the coming years; company plans to offer credit and insurance products for its merchants.

Largest cost center, forming 53% of overall cost in FY22; escalated 2.7X to Rs 101 crore in FY22, including Rs 16 crore in ESOP expenses.

Spent 74.2% of total expenditure on advertising and promotions in FY20 (television, digital, social media) to acquire its merchant base; costs shot up 590X from FY19 to around Rs 94.4 crore in FY20.

Payment gateway charges increased 42% to Rs 17 crore in FY22; other expenses including contractor and payment gateway charges surged 51% YoY to Rs 106.44 crore in FY24.