Dealflow | August 30, 2021

Khatabook and Bazaar raise financing to digitize small businesses in India and Pakistan

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, August 30 — Investors continue to swarm enterprise technology providers helping small businesses go online. Last week, Nuvemshop raised $500 million to support digitization of small businesses in Brazil.

In India, Khatabook raised $100 million to help Indian merchants manage their business transactions online. The company said its app supports 10 million merchants. The financing round was co-led by U.S.-based Tribe Capital and Moore Strategic Ventures, with participation from Sequoia Capital, Better Capital, Unilever Ventures and others. 

Khatabook also announced an expansion of its employee stock ownership plan, or ESOP, and stock buy-back to allow early employees and investors to cash in a portion of their vested shares.

Like Khatabook, Pakistan’s Bazaar provides bookkeeping services for small businesses. It also runs an ecommerce marketplace for Pakistan’s small business ecosystem. The company raised $30 million in a Series A round co-led by Defy Partners and Wavemaker Partners.