Khatabook focuses on digital lending, SaaS for revenue

• ByStartupStory     |    October 19, 2022

Khatabook, a fintech and accounting startup, is looking to expand its financial services business. The startup is increasing its focus on digital lending while expanding the subscriber base for its paid software-as-a-service (SaaS) offering.The company hopes to become profitable within the next 18-20 months. Khatabook currently generates annualised gross revenues of Rs 70 crore.

In the next 12 months, the startup plans to gradually scale up its digital lending business and grow its assets under management past Rs 1,000 crore. Khatabook has been testing its lending products for the past six months, partnering with four non-banking finance companies (NBFCs) to disburse credit. According to Naresh, Khatabook plans to enter the supply chain financing space next year. A majority of the company’s revenues come from digital invoice and reconciliation software Biz Analyst, which it acquired for $10 million in a cash-equity mix in March last year.

The Biz Analyst platform has approximately 150,000 paid users, and Khatabook is used by over 10 million active merchants each month. According to Naresh, the company expects an equal revenue mix from its software subscription and lending businesses. By the end of December 2023, the number of paying Biz Analyst subscribers is expected to double from 150,000 to 300,000,000. The service began about 18 months ago. In August 2021, Khatabook raised $100 million in a funding round led by Tribe Capital and Moore Capital Ventures.  Tribe Capital, based in Silicon Valley, will continue to invest in commerce enablement startups.

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