Khatabook in discussions to raise $100M
Khatabook is in discussions to raise funds from new and existing investors, three people aware of the development revealed. The news comes at a time when its competitors like Dot have raised a new round while Dukaan is set to raise up to $30 million in a round led by Tiger Global.
“Khatabook has been in talks with Hedosophia to raise a new round that could go over $100 million,” said one of the people mentioned above requesting not to be named. “Existing investor DST Global would also participate with a significant contribution.”
According to sources, other existing investors including Sequoia are expected to join the Series C round on a pro-rata basis. If the round unfolds, it would give Khatabook a firm position against its rival OkCredit in the bookkeeping space and Dukaan, Dot, Bikayi in the e-commerce enablement segment.
“Khatabook will be valued over $600 million in the new round which could also be joined by more new backers,” said another source who also requested anonymity as talks are private.
This will be a 2X jump in the company’s valuation which had raised $60 million in a Series B round at a valuation of $250-300 million. The company has raised nearly $90 million across two rounds from DST, Sequoia Capital, and Tencent among others.
However, the deal may or may not happen and its terms could still change.
If this deal materializes, it could mark the first investment made by London-based Hedosophia in the Indian startup space. Hedosophia has about $250 million under management, and its 12 active investments include Berlin-based online bank N26 and London fintech firm SaltPay, according to venture capital analysis site Pitchbook.
In March, Khatabook acquired Biz Analyst for $10 million to support its e-commerce enablement product MyStore.
Khatabook was a pre-revenue-making company until FY20.
Khatabook had registered a total expenditure of Rs 127 crore for the fiscal year ended on March 31, 2020, without any operating revenue.
Lightspeed-backed OkCredit also posted zero revenue while its expenditure and losses stood at Rs 157.5 crore and Rs 156.6 crore respectively.
Khatabook has built an innovative platform to simplify finances for business in the MSME sector. The startup seems to be performing very well and I’m sure it will grow even more in the time to come. My best wishes to the team of Khatabook.Shishir Gupta, Founder and CEO, StartupLanes
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