Khatabook’s FY22 Loss Surges 3.4X To INR 111 Cr, Revenue Up To INR 78 Cr

Fintech startup Khatabook’s net loss widened over 3X to INR 111.1 Cr in the financial year 2021-22 (FY22) from INR 32.5 Cr in the previous fiscal year as its cash burn increased with the growth in business.

The startup’s revenue from operations quadrupled to INR 71.1 Cr from INR 16.9 Cr in FY21. It earned most of its revenue from software development and consultancy services. In FY22, Khatabook earned INR 58.1 Cr from software development and consultancy services, a jump of 405% from INR 11.5 Cr in FY21. 

Total income, including other income, surged to INR 78.1 Cr from INR 19.1 Cr in FY21. 

The growth in operating revenue resulted in a rise in Khatabook’s expenses in FY22, albeit at a slower pace. Total expenses grew 74% to INR 189.3 Cr in FY22 from INR 108.6 Cr in FY21.

Employee benefit expenses accounted for the biggest share in total expenses, surging 173% to INR 101.1 Cr from INR 37 Cr in the previous year. Communication expenses rose to INR 24 Cr, a 200% increase from INR 8.4 Cr in FY21. 

Khatabook, founded by Vaibhav Kalpe and later acquired by Kyte Technologies in 2018, is a fintech startup that helps small shopkeepers and kirana store owners manage their accounts and keep track of the money owed to them through a digital ledger. After its acquisition, Kalpe joined the Kyte team. 

In August 2021, the startup raised $100 Mn in its Series C round led by US-based VC firms Tribe Capital and Moore Strategic Ventures (MSV) at a valuation of $600 Mn. The funding round also saw participation from Alkeon Capital, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, Better Capital, and others. 

After raising the round, the startup discontinued its flagship book-keeping app and MyStore, a digital online storefront for kiranas. The startup informed its customers that it planned to discontinue the MyStore App from November 15, 2021. At present, the startup offers business management applications for MSMEs in multiple languages. The startup claims its app has been downloaded by over 50 Mn users. 

Khatabook competes against the likes of OkCredit, Pagarbook, and Paytm’s Business Khata.

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