Vyapar Acquires Suvit To Boost AI-Led Accounting Automation For MSMEs

SUMMARY

Business accounting startup Vyapar has acquired AI-driven accounting automation startup Suvit to strengthen digital compliance solutions for Indian MSMEs

Following the acquisition, Suvit founder Ankit Virani will join Vyapar as a business head, overseeing the integration of automation offerings into the broader Vyapar ecosystem

As per a report by Research And Markets, the accounting software market in India is expected to reach $5.75 Bn in 2030

Business accounting startup Vyapar has acquired AI-driven accounting automation startup Suvit to strengthen digital compliance solutions for Indian MSMEs.

Following the acquisition, Suvit founder Ankit Virani will join Vyapar as a business head, overseeing the integration of automation offerings into the broader Vyapar ecosystem, the startups said in a statement. However, it didn’t disclose the financial terms of the deal.

Founded in 2016 by Sumit Agarwal, Ruqiya Irum and Shubham Agrawal, Vyapar offers accounting and inventory management for small businesses.

The Bengaluru-based SaaS startup helps MSMEs deal with invoicing, inventory, accounting, compliance requirements, among others. It competes with the likes of Clear and SahiGST in the fintech segment. It claims to serve over 1 Cr MSMEs.

Vyapar last raised $30 Mn from WestBridge Capital, IndiaMART and India Quotient in 2022.

Meanwhile, Suvit, founded in 2022 by Virani, offers AI-enabled pre-accounting, GST reconciliation and advanced compliance solutions for chartered accountants and MSMEs. The accounting automation platform is recognised by the Institute of Chartered Accountants of India (ICAI). As per its website, it caters to over 10K practicing firms and 30K accountants via its platform.

The combined entity, post the acquisition, will enhance operational efficiency and offer richer compliance features to MSMEs and tax professionals, accelerating SaaS and AI adoption, the statement added.

The business management and accounting SaaS sector for MSMEs and professionals in India continues to see strong demand for digitisation, regulatory simplification and workflow automation.

As per a report by Research And Markets, the accounting software market in India is valued at around $3.38 Bn in 2024 and is expected to reach $5.75 Bn in 2030. As a result, investors are actively backing SaaS accounting startups to capitalise on this opportunity.

Last year, Prosperr.io raised INR 12.9 Cr in a pre-seed funding round led by Pinterest to simplify the process of managing and paying taxes. HostBooks also secured $5 Mn as part of its $15 Mn Series B round from Orange Orbit LLP in December last year.