News: Khatabook plans to become merchants focused digital bank in 2022

Technology

Khatabook plans to become merchants focused digital bank in 2022

The Fintech startup intends to become the most accessible neo-bank platform for Indian merchants by providing them digital touchpoints to avail and manage credit, savings, and cash flows.
Khatabook plans to become merchants focused digital bank in 2022

Fintech startup Khatabook announced its plan to become a digital bank for MSMEs before the end of 2022. This decision is in line with Khatabook's aim to empower MSMEs with digital business capabilities, says a release from the company. The startup plans to hire 80 people in its lending, payments, and financial services teams this year.  

With its user base spread in almost every district in India, Khatabook intends to become the most accessible neo-bank platform for Indian merchants.  

Started in January 2019, Khatabook is a SaaS company that helps merchants in India digitise their bookkeeping and accept online payments.  

Khatabook has built end-to-end payment services on its platform to help merchants send or receive money for their business expenses or revenues. The “Collect” payment link can be shared by the merchant for settling payment dues with the customers. Recently, an IVR-enabled, bot call reminder feature has been added to further assist merchants with collecting their dues. Users can accept UPI payments from their customers via any popular UPI app through the UPI QR code.

The payments services on Khatabook have improved the cash flows for businesses by threefold, says the company release. This functionality also extends to salary-related payment disbursements and management for merchants. 

With the Series C funding announcement in August 2021, Khatabook expressed the intention of enhancing financial services on the platform by introducing lending for MSMEs. The startup has concluded a successful pilot and is in the process of introducing lending on the App.

Besides term loans, the startup also intends to provide various financing options like invoice discounting and supply chain financing for its merchants and their counter-parties on its Biz Analyst platform, so that they can collaboratively manage their capital.  

Ravish Naresh, CEO, and Co-founder, Khatabook, said, "The biggest strength of Khatabook Neo Bank is the in-depth knowledge of varied requirements of retailers, suppliers, wholesalers and ensuring customized financial services for each role within the traditional supply chain."  

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Topics: Technology, Startups

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