$70 million funding may take Khatabook valuation to $300 million

NEW DELHI/BENGALURU: Accounting services provider Khatabook, which helps merchants record and track business transactions, is in the final stages of closing a $70-million (about Rs 503-crore) funding round led by new investor B Capital Group, according to three people directly aware of the development.
Existing backers Sequoia Capital and Tencent are also expected to participate in the financing round, the people said. The round more than triples the valuation of the Bengaluru-based startup to between $275 million and $300 million in less than four months, indicating continued bullishness among investors to back highgrowth financial services startups.


Emails to Khatabook, B Capital Group and Tencent did not elicit responses at the time of going to press. Khatabook’s features include sending periodic reminders to creditors through messages and report generation, which in turn helps small merchants recover payments on time and efficiently.

“While incumbents in the space have gained market share by creating an offline presence, Khatabook is the first to do it at scale, digitally,” an investor aware of the deal said.

If the deal goes through, it will be the latest investment by B Capital Group, the US and Singapore-based investment firm launched by Eduardo Saverin, cofounder of social media giant Facebook, and Raj Ganguly, who was formerly with Bain Capital. In January, the firm co-led a $105 million round in mobility startup Bounce, while also participating in B2B packaging materials marketplace Bizongo’s $30 million Series C funding round.