Uncover the KhataBook Success Story: A tale of simplifying accounting burdens and transforming financial management.
Wade up of managing your accounts manually?
Unable to maintain your books systematically?
This bookkeeping startup can help you resolve all your accounting problems.
Change your traditional way of bookkeeping into a digital mode.
KHATABOOK: Business Hua Easy
Company Brief and Business model
Khata Book is a bookkeeping startup helping merchants and businesses to maintain their books of accounts and accept online payments. The startup was launched in 2018 by Ashish Sonone, Dhanesh Kumar, Vaibhav Kalpe, Jaideep Punia and Ravish Naresh. Company is privately owned, based in Bangalore, Karnataka. The startup has successfully helped businesses to move their manual books of accounts digitally. Khata book allows users to maintain their on their smartphones, with ease user interface, in expensive data plans and digital payment. The app is available in 12 different languages
The app also allows merchants to maintain their stock books.The app is operated by Kyte technologies. Users can maintain their accounts digitally and credit balance recording. Khata Book service is free to use and ensures safe transactions.
Idea of Khata Book
Back in 2016, Ravish Naresh founded digital expenses manager app Kyte.ai along with his college friends. The app worked well to manage all your spending patterns but the app failed to achieve the desired growth. On research the team and Ravish found that Indians are involved in digital transactions and they still keep their accounts manually in Bahi Khata. So they thought of creating a change in the method and developing something to let people come online. It was the birth of the Khata Book app. Khata Book is owned by the previous company of Ravish and team @Kyte Technologies.
Khata Book has raised around $186.7 million so far. In 5 rounds of fundraising the company has increased its value to more than $650+ million.
Company has closed a pre seed round at an undisclosed amount.
Company has raised $1.5 million from Surge investors, it was the first seed round of the company.
In the same year, the company also raised $25 million in a Series A round.
Khata Book has raised $60 million in its Series B round of fund raising from B Capital Group.
In 2021, the company conducted series C round from which the company raised Rs. 7.4 B from Moore Strategic Ventures, Tribe Capital.
Mission and Vision of the company
Khata Book operates with a mission statement “ Empowering Udhari Khata ”. It has a mission to solve the financial problems of millions of users who face difficulty in bookkeeping.The company aims at reducing the burden of accounting by easing the book keeping on the clicks of smartphones.
With the view to simplify business, empower merchants, Khata Book is continuously putting an effort to make the accounting simple and hassle free for its users.
Features of App
The app allows merchants to send automatic payment reminders to their customers. This allows you to send messages on whatsapp and text.
The app transactions are 100% secure and safe.
Khata Book allows merchants to maintain multiple tasks at a time.
It also provides merchants to record their invoice for all transactions undertaken.
Products and Service
Khata Book offers a bookkeeping accounting application to record and maintain all your business transactions with ease. Khata Book mainly helps MSME and other small businesses to keep their accounts up to date without any complexity. Khata Book apps allow the merchant to send auto payment reminders to the customers, and both the customer and merchant can verify all their transactions under the app.
Khata Book offers following other product or services to their customers:
Pagarkhata: This is another masterpiece by Khata Book where businesses can record their staff attendance, wages and payroll in digital mode. Pagarkhata has seen record downloads with around more than 2.5 million businesses using this app to maintain their staff attendance.
Biz Analyst: This is Saas based management eco system to provide users with many value added services.
Cashbook: This allows users to maintain an online digital cash handling solution.
Khata Book has achieved 10 million downloads within a year of its launch. Today the business is spreaded across more than 5000 cities and 729 districts of the country. With this company was one of the fastest growing B2B brands in the world. Roughly $ 200 million worth of transactions are done every day on Khata Book.
Khata Book has reported a 4 times growth in revenue with around Rs. 70 crore in F.Y 22 and a loss of Rs. 111 crore, higher than previous year. Due to the heavy operating expenses Khata Book has reported a huge loss despite the increase in revenue. Out of 71 crore around 58 crore of revenue is from Software development and consultancy and remaining from Utility services.
Issues / Challenges faced
In the initial period Khata Book has launched many significant changes to make the application and user interface more friendly and better interface. But the users of the application thought that the Khata Book had changed and they started leaving the app. So the company gradually made small changes and not in a single shot to keep the user behaviour in mind with innovation.
Another major issue with the company was to convince manual book keeping shopkeepers to convert and come to the online digital model. Initially, company also stuggle for the finance and it was important for the company to raise the funds to grow and expands further.
Khata Book application has more than 50 millions downloads on play store. As per the reports Company has more than 350 million customers on its platform with around 20+ million monthly active customers. The numbers look attractive with increasing trends.
Khata Book is a leading application for bookkeeping in India. Khata Book has many rivals offering similar services to the customers.
My Store app
Company has launched a Mystore app to allow businessmen and shopkeepers to take their stores online during the pandemic. The App had registered more than 2.5 million customers within a month of its launch. Though the app was shut down by the company in Nov 2021.
The founder of the company Naresh said that the company now looks at building the application more value to the customer and a total monetary facility to private ventures. Company also plans to bring large groups to the stage and also install UPI. The company is focussing on the MSME segment to streamline and simplify business processes.
The company has touched the valuation of $600 million in the last round of funding. The company is hitting new milestones as the revenue model of the company is robust and has shown significant growth in the past. In the future outlooks as well the valuation of the company is seen to be in up trend.
Khata Book has become the popular and most used bookkeeping application in India. With continuous enhancing the user experience and developments, Khata Book is winning the heart of small businesses by easing their bookkeeping problem. In the long run the company plans to add more value to the customer services and instalment of UPI.