SMB-focussed HR management startup PagarBook has raised $15 Mn (about INR 110 Cr) in a Series A funding round led by Sequoia Capital, with the participation from India Quotient. The funding will be used to further accelerate product development and customer acquisition.
The company is also looking to add financial products to solve payments and credit access for micro, small and medium enterprises (MSMEs) over the upcoming year. The company was a part of Sequoia Surge 4.
PagarBook was founded in 2019 by Adarsh Kumar, Arya Adarsha Gautam and Rupesh Kumar Mishra. The company develops a mobile-first payroll and workforce management app that aims to digitise people management among SMEs in India. Just like many apps targeting the SMB space, Pagarbook is available in 11 Indian languages.
The app enables businesses to manage and maintain attendance records, speed up payment cycles for wages and salaries, reduce disputes over pay, eliminate human errors in wage calculation, as well as payouts and other human resource management solutions.
“India’s 60 Mn SMEs and its 400 Mn large workforce contribute roughly 30% of India’s GDP, but still lack a verified financial and professional footprint in any organized technology ecosystem. As a result, they are left out of the mainstream financial ecosystem,” PagarBook CEO and cofounder Mishra added.
The company claims to have over 5 Mn SMEs registered on its platform, the majority of which have joined the platform in the last seven months. PagarBook’s CEO and founder Mishra said that Pagarbook is currently managing around 2% of India’s SME workforce in India. It plans to grow 5x in 2021 to manage 10% share.
The SMB-focussed enterprise tech segment became a hot one this year as SMEs rushed to look for simpler and effective alternatives to digitize themselves. The pandemic hit offline operations, cash flow had dried up and digital solutions became a necessity.
Operating in the retail tech segment, startups such as Dukaan and Sequoia-backed Khatabook have cashed in on the opportunity, with other platforms such as Bikayi, PeelWorks, and more also seeing robust growth.