Khatabook strategy to be profitable
In the following 18 months, Bangalore-based finance startup Khatabook hopes to reach the profitability criterion. And in order to do this, the MSME lender intends to concentrate on its digital financing options and increase the number of people who use its for-profit Software-as-a-Service (SaaS) products. A commercial desktop edition of Khatabook will be released in November in keeping with this progress.
According to a statement the company made, it also aims to handle Rs 1,000 crore worth of assets in the upcoming 12 months.
The company’s co-founder and CEO, Ravish Naresh, offered the following statement regarding this announcement and the journey ahead: “We had a strategic timeline to focus on Growth for the first three years and then approach monetization. Our growth process has been incredibly rewarding. Our platform currently has 10 million monthly active users throughout practically every district in India, and our MSME users conduct more over $32 billion worth of transactions each month.
According to information provided by the Micro, Small, and Medium Enterprises Ministry, the MSME sector employs more people than any other after agriculture, contributing around 30% of India’s GDP and 45% of its exports. PM Narendra Modi has frequently emphasized how important this sector will be in assisting India’s transition to a $5 lakh crore economy. In addition, Naresh said that they are currently concentrating on organic development and adding more than 600 monthly installs that way. They will become lucrative with the use of this “strategic blueprint.” In 2018, Naresh and his friends Dhanesh Kumar and Jaideep Poonia established Khatabook. The Bengaluru-based startup was founded with the goal of digitizing small enterprises’ ledgers, or “khatas.”