Bengaluru-based KhataBook, which enables SMEs to record and track business transactions, has received a fund worth $25 million in Series A funding led by GVV Capital, Partners of DST Global, Sequoia India, Tencent, and others. Many investors like Amrish Rau, Kunal Shah, Kunal Bahl, Jitendra Gupta, Head-LazyPay; and Anand Chandrasekharan, Deep Nishar, Gokul Rajaram were among others who participated in this round of funding. With this, the total funding raised by

KhataBook will be $29 million. Y combinatory and Info Edge are also investors in Khatabook. Khatabook is one of the 17 startups from the first cohort of Sequoia Surge-backed Khatabook.

“With this round of funding, we are looking to scale our tech team, build more products that can help SMEs manage their business and focus strongly on security and other essential apps,” said Ravish Naresh, CEO, and Co-founder, Khatabook. He further added that at present, it is at an inflection point with dramatically low data costs and strong adoption of smartphones, especially by several merchants.

As of August this year, KhataBook recorded over $3 billion worth transaction on its platform. This, the team adds, has cut down the receivables of merchants to half within a few weeks of onboarding. The team claims to have helped over five million merchants to save over 600 working hours in a year. This app has helped its users recover approximately $5 billion that was stuck in credit, in the space of six months. This trend can lead to a significant impact on India's MSME sector. The team aims to launch other products for MSMEs in the next few months and plans to reach over 25 million Indian merchants in the next 12 months.