Khatabook

The company provides a digital ledger application that enables small business owners to transition from traditional paper-based accounting (bahi khatas) to a digital format. This addresses a core need for millions of merchants, primarily in tier-2 and tier-3 cities across India. The platform operates on a freemium model, offering essential bookkeeping tools for free to attract a large user base. Revenue generation is pursued through several value-added services. These include transaction fees from digital payment solutions like UPI and QR codes, and premium subscription plans (Khatabook Pro) that offer advanced features such as detailed analytics and multi-device access. Furthermore, Khatabook has entered the lending sector, providing business loans and working capital financing to its users and earning revenue from interest income and commissions from financial partners. The company also explores cross-selling other financial products like insurance.

The core product is a mobile application that allows users to securely record credit and debit transactions, manage customer and supplier accounts, and track inventory. A key feature is the ability to send automated payment reminders to customers via SMS and WhatsApp, which helps improve cash flow for businesses. The app supports multiple Indian regional languages, enhancing its accessibility. Users can generate and download financial reports in PDF format for accounting and tax purposes. Khatabook also enables businesses to create a digital storefront through its 'MyStore' feature and manage staff salaries with 'Pagarkhata'. Since its inception, Khatabook has secured significant funding, raising a total of $187 million over several rounds, with a notable $100 million Series C round in August 2021 that valued the company at $600 million.