HostBooks will use the funds to scale operations and develop its existing product suite
It will deploy funds to launch new products to support order management, neo-banking, advanced inventory and production management, and AI-based posting and recommendation system
It claims to be offering services to 250K small and medium enterprises
Gurugram-based fintech startup HostBooks has secured $3 Mn through equity financing in its Series A funding round. The round was led by fintech unicorn Razorpay.
HostBooks will use the funds to scale operations and develop its existing product suite. It will also deploy funds to launch new products to support order management, neo-banking, advanced inventory and production management, and an AI-based posting and recommendation system.
Harshil Mathur, CEO and cofounder, Razorpay said, “It is promising to see that companies like HostBooks are playing a critical role in creating a thriving growth environment for small businesses. With our shared vision of fostering growth for businesses, we would work together towards building a stronger, frictionless business operations SaaS and banking ecosystem for millions of MSMEs in India.”
Founded in 2009 by chartered accountants – Biswajit Mishra and Kapil Rana, HostBooks is a cloud-based platform that offers accounting and compliance functions to small and medium enterprises (SMEs). The startup essentially helps SMEs manage their accounting, tax, GST, TDS, e-way bill, E-invoicing, income tax, and payroll.
Rana, founder of HostBooks, said, “We are simplifying and automating the entire business process by focusing on the sources of the transactions, banking, accounting, and tax compliances with an integrated end-to-end business management solution.”
According to the statement, HostBooks is offering services to 250K small and medium enterprises. The startup claims to have helped its clientele reduce business operations expenses by 70%.
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HostBooks faces competition from the likes of SahiGST, Vyapar and ClearTax in the fintech sector.
According to a report, the Indian fintech industry is anticipated to reach $1.3 Tn, growing at a CAGR of 31% by 2025. Over the years, the fintech sector has significantly contributed to the business ecosystem by meeting their credit needs, offering new-age investment opportunities, and automating business services through SaaS solutions.
A few days ago, fintech app ARTH secured $2.5 Mn in its Pre-Series A funding round from DEG and MIT Alumni Network.
This month, fintech startup FlexiLoans bagged $90 Mn in its Series B round from inventors including MAJ Invest, Fasanara Capital, the family offices of Harry Banga and Yogesh Mahansaria, among others.
Besides, another fintech unicorn slice garnered $50 Mn from Tiger Global, Moore Strategic Ventures, Insight Partners and GMO VenturePartners. The funds would be used for expanding its UPI.
Update | 13th June, 5.10 PM IST
The article has been updated to include funding details. The previous details were wrong.