Khatabook stakes on lending, SaaS for revenue

Khatabook stakes on lending, SaaS for revenue
Fintech and accounting startup Khatabook is looking to scale up its financial services business. To this end, the startup is doubling down on digital lending, while seeking to widen the subscriber base for its paid software-as-a-service (SaaS) offering.
The company is looking to turn profitable in the next 18-20 months. Currently, Khatabook clocks gross revenues of Rs 70 crore on an annualised basis.
“Our journey has been focussed on growth and we wanted to reach as many users as possible,” Ravish Naresh, cofounder and CEO of Khatabook, said. “Post raising our last round we have been mostly focussing on scaling one or more of our revenue pipes.”
The startup intends to gradually scale up its digital lending business and take its assets under management past the Rs 1,000 crore mark in the next 12 months. Over the last six months, Khatabook has been piloting its lending products, partnering with four non-banking finance companies (NBFC) to disburse credit.
Khatabook is also looking to enter the supply chain financing space next year, Naresh added. All this comes in the wake of the startup being criticised earlier for not having an active business model and recording zero revenue in FY20. Doubling SaaS base A majority of the company’s revenues come from digital invoice and reconciliation software Biz Analyst, which it acquired for $10 million in a cash-equity mix in March last year.
The Biz Analyst platform has about 150,000 paid users and over 10 million active merchants use Khatabook every month. Naresh said the company is forecasting an equal revenue mix from both its software subscription and lending businesses. The paying Biz Analyst subscriber base is expected to double from 150,000 to 300,000 by the end of December 2023. The service was started about 18 months ago.
Khatabook last raised $100 million in a funding round led by Tribe Capital and Moore Capital Ventures in August 2021. As per an earlier report,t the Silicon Valley-based Tribe Capital will continue to invest in commerce enablement startups.