Over the past three decades or so, India has emerged as one of the biggest economies in the world. The advancements have fueled much of the country’s economic growth in the tech services sector, but over the past five years or so, a vibrant startup scene has evolved. From e-commerce payments to groceries and car-hailing, all sorts of startups have been developed, and venture capitalists from all over the world have invested billions in these companies. One of the more interesting startups that have emerged in recent years is OKCredit, which is based out of the tech hub of Bangalore and provides digital bookkeeping services to small businesses.
In a new development, OKCredit has raised $67 in its latest round of funding and the money is going to be used to help the company expand in the vast nation. The funding round was led by Tiger Global and Lightspeed. It is interesting to note that it was only in June 2018 that the company had its first funding round. Another one in such close succession suggests that investors do see promise in the business. After the latest funding round, the total capital raised by the company stands at $83 million and it remains to be seen how the company expands its operations.
The company has an app that allows business owners and merchants to track their day to day expenses and incomes daily. The founders of the company revealed last month during an interview that at this point in time, the company has 5 million active customers. Those customers are spread across as many as 2000 cities in India. The company released a statement after the funding round had been completed. The chief executive officer of OKCredit, Harsh Porkhana said,
Technology has moved from collecting payments in cash, to using point-of-sale machines. More recently, QR codes, paper bills turned to printed bills. But the one thing that has not changed is the fact that most customers still purchase goods on credit recorded in a notebook.
India has a large number of businesses in which formal accounting practices are still not prevalent and that often leads to a loss of value for the merchants. The availability of an app like OKCredit allows merchants to go about their businesses without having to worry about the day to day bookkeeping.