Khatabook

Khatabook is India’s MSME-focused fintech platform, transforming how small businesses manage credit, accounts, and commerce. Originally launched as a digital ledger app for India’s ubiquitous “bahi khata,” Khatabook has evolved into a comprehensive suite for bookkeeping, payments, inventory, and business analytics. The company’s unique value proposition lies in its mobile-first, vernacular-friendly platform, which empowers even the smallest kirana stores and micro-entrepreneurs to digitize operations with minimal friction. 

Core Products and Services

• Khatabook App: Digital ledger for credit tracking, customer reminders, and payment settlements (supports 12+ Indian languages).

• Pagarkhata: Staff management and payroll solution for MSMEs, including attendance, salary, and compliance.

• Biz Analyst (acquired): Advanced SaaS platform for inventory, sales analytics, and GST filing, targeting slightly larger SMEs.

• Khatabook Payments: UPI-based digital payments, QR code collections, and integration with India’s payments infrastructure.

• Business Analytics: Insights, reports, and reminders to help merchants manage receivables, payables, and cash flow.

Business Model & Revenue Streams

• SaaS Subscriptions: Paid plans for Biz Analyst and premium features in Pagarkhata (contributed ~60% of FY24 revenue).

• Payments & Transaction Fees: MDR on UPI/QR collections, value-added payment services (~30%).

• Advertising & Partnerships: Brand promotions, financial product cross-sell (~10%).

• Revenue: ₹62 crore (FY24, up 22% YoY).

• Net loss: ₹111 crore (FY24, narrowed by 18% YoY as cost optimization kicked in).

Customer Segmentation

• B2B Focus: Kirana stores, micro and small retailers, service providers (90%+ of user base).

• SME/Enterprise: Larger SMEs via Biz Analyst (10%).

Top Clients & Partnerships

Key Clients

• Millions of MSMEs, including kirana stores, wholesalers, and small manufacturers.

• Notable SME clients via Biz Analyst in pharma, FMCG, and distribution sectors.

Strategic Partnerships

• NPCI: For UPI integration and payments infrastructure.

• HDFC Bank, ICICI Bank: For merchant banking and credit products.

• Amazon, Unilever: Brand partnerships for merchant engagement and promotions.

Future Outlook & Strategic Priorities

• Financial Services Expansion: Launch of micro-credit, insurance, and merchant loans leveraging transaction data.

• SaaS Upsell: Deeper penetration of Biz Analyst and premium payroll/inventory features.

• Rural Digitization: Targeting the next 20 million MSMEs in Tier 2–4 cities and villages.

• Regulatory: Evolving RBI/UPI guidelines and data privacy mandates.

• Monetization: Balancing user growth with sustainable unit economics amid India’s price-sensitive MSME market.