India-based accounting and invoicing software provider Khatabook is near to raising $70m from investors including internet group Tencent at a valuation of $275m to $300m, the Economic Times reported on Monday.
B Capital Group, the investment firm sponsored by management consultancy Boston Consulting Group, is expected to lead the round, with venture capital firm Sequoia Capital also likely to invest.
Founded in 2018, Khatabook has developed an app with an estimated 1.1 million daily active users that helps small and medium-sized businesses process payments and manage their accounts.
The platform automatically sends digital copies of receipts to the user’s mobile device and can be used across multiple retail stores. Khatabook has applied for a non-banking licence from India’s authorities and plans to also begin offering business loans, according to ET.
The company secured $25m in an October 2019 series A round featuring Tencent and venture capital firms GGV Capital, RTP Global and Sequoia India along with accelerator operator Y Combinator and partners of investment firm DST Global.
Khatabook’s valuation is set to be more than tripled in the prospective round, ET stated. The startup, which took part in Sequoia India’s Surge accelerator in April 2019, has so far raised just over $27m according to the publication.