Accounting Startup HostBooks Bags $5 Mn To Expand Its AI Product Suite

SaaS-based accounting startup HostBooks has raised $5 Mn (around INR 42.4 Cr) as a part  of its $15 Mn Series B funding round from Orange Orbit LLP.

According to the company, of the total funding round, the first tranche of $2.5 Mn had already been disbursed.

The Gurugram-based startup plans to deploy the fresh proceeds to expand its AI product suite, grow its global footprint and to strengthen the team across sales, product marketing and operations.

Founded by Kapil Rana in 2009, HostBooks offers cloud-based solutions, assisting businesses in addressing compliance, accounting, finance, and operational complexities. The startup also leverages AI and machine learning to facilitate entrepreneurs with complete operational control.

Later, it roped in Biswajit Mishra as its cofounder.

HostBooks claims to have expanded its offerings in UAE back in 2023.

In 2022, the company secured $3 Mn in its Series A funding round led by fintech giant Razorpay. 

This comes at a time when India’s fintech space has been gaining a lot of traction from investors.

For instance, a few days back, fintech startup Snapmint bagged $18 Mn in its Pre-Series B funding round led by Prashasta Seth of Prudent Investment Managers to launch new BNPL products.

Similarly, fintech startup Mintifi  raised a total of $180 Mn (over INR 1500 Cr) in its Series E funding round co-led by Teachers’ Venture Growth (TVG) and Prosus to expand its footprint across key sectors and strengthen its position in the supply chain financing segment.

Meanwhile, addressing the Global Fintech Summit 2024, Prime Minister Narendra Modi said that Indian fintech startups have seen a 500% growth in the last 10 years, with the homegrown fintech ecosystem attracting investments of more than $31 Bn.

As per Inc42’s report, India is home to 24 fintech unicorns, and 36 soonicorns. 

The report further states that the Indian rural fintech space is expected to reach the $208 Bn mark by 2030.

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