Bangalore-based Digital credit ledger Khatabook has raised $60 million (about Rs 454 crore) in a fresh equity financing round led by B Capital Group, the investment firm founded by Facebook co-founder Eduardo Saverin. This takes the total funding raised by the twoyear old firm to $87 million.

The Series-B round, which according to sources values Khatabook at between $275 million and $300 million, has also seen participation from a clutch of existing institutional investors, including Sequoia Capital, and Partners of DST Global, Tencent, GGV Capital and RTP Global, along with a number of prominent angel investors.

“Started with a vision of transforming India's small shops, today we are the biggest player in the small business segment digitising a sector that forms the backbone of our economy. We are looking to work closely with the government and financial institutions to strengthen our market leadership and help MSMEs increase their income while making them more efficient and competitive," Ravish Naresh, chief executive of Khatabook, says.

The company plans to deploy the fresh capital in building financial services products. Khatabook competes with the likes of OkCredit and Paytm’s Business Khata, allowing small and medium enterprises to record financial transactions, while also sending reminders to their creditors via text and instant messaging platforms, reducing the need to maintain account books in physical form. Khatabook claims to have reached over 8 million active merchants across 11 languages in less than a year.

Khatabook was founded in 2018 by four IIT Bombay alums, Ravish Naresh, who was also a co-founder and former chief operating officer at realty portal Housing.com, Jaideep Poonia, Dhanesh Kumar and Ashish Sonone. It last raised $25 million in a Series A funding round from GGV Capital, Tencent, Sequoia Capital, along with a clutch of top angel investors, in October 2019.