Khatabook, the fintech startup which provides digital ledger app targetted primarily at small businesses has announced the acquisition of Mumbai-based Biz Analyst, a SaaS startup in a deal valued at $10 million.
The transaction will be a mix of cash and equity. Through this acquisition, Khatabook aims to leapfrog into the next phase of growth where it will provide premium value added services.
Khatabook has around 10 million active monthly merchants currently, and it has processed over 1.4 billion transactions with a cumulative value of more than $100 billion.
According to Khatabook, the acquisition of Biz Analyst will create a closer integration with their upstream supply chains — distributors, wholesalers, traders, and suppliers.
Ravish Naresh, CEO and Co-founder, Khatabook said, “This deal is our first strategic acquisition as we intensify our network effects up the supply chain and focus on monetisation. The features and strengths that Biz Analyst offers are the perfect extension to our present business portfolio. The acquisition is a step forward for Khatabook in its mission to provide business efficiency to India’s MSMEs through value-added services.”
Launched in late 2016, Biz Analyst is a cash flow positive business providing solutions to SMEs using Tally accounting software to automate daily business operations and make data-driven decisions to manage sales, inventory, outstandings and productivity.
Biz Analyst has a paid user base of 80,000 and now as part of Khatabook, the aim is to double the customer size.
Following this transaction, the team of Biz Analyst will continue to run independently, retaining Mumbai operations while maintaining synergies with the Khatabook headquarter in Bangalore. The original co-founding team of Biz Analyst, Vaibhav Vasa, Mehul Sutariya and Nilesh Zaveri, will now be a part of Khatabook’s leadership team.
Vaibhav Vasa and Mehul Sutariya in a joint statement said, “Together, we look forward to expanding the digital adoption by SMEs through our affordable SAAS solutions and connecting businesses across different verticals onto a single platform.”