Gurugram, India-based micro, small and medium enterprise-focused fintech startup HostBooks raised USD 3 million in series A funding. The company announced the news on June 10, 2022. Fintech unicorn Razorpay led the funding for HostBooks.
Purpose of Funding for HostBooks
The fintech startup HostBooks plans to use the latest capital to scale operations and develop its existing product offerings.
The platform will also deploy funds to launch new products. The new products will focus on supporting order management, neo-banking, advanced inventory and production management. Besides, the company plans to incorporate an AI-based posting and recommendation system with its product suite.
What the founders have to say
Kapil Rana, the cofounder of HostBooks, said, “We are simplifying and automating the entire business process by focusing on the sources of the transactions, banking, accounting, and tax compliances with an integrated end-to-end business management solution. HostBooks, with its large range of services like billing, accounting, inventory management, payroll, compliance management, banking, and advanced business reporting, envisages making the whole process automated, easy to understand, hassle-free, and efficient.”
In addition, Biswajit Mishra, cofounder, HostBooks, said, “We share a common vision with Razorpay, which is to build the financial backbone for businesses in India and enable them to thrive. This funding is a major step forward in that direction. Through Razorpay’s support and expertise, we would not only be able to make business processes simpler for entrepreneurs but also give them the tools they need to fast track the growth of their business.”
What the investor has to say
Harshil Mathur, CEO and co-founder of Razorpay, said, “It is promising to see that companies like HostBooks are playing a critical role in creating a thriving growth environment for small businesses. With our shared vision of fostering growth for businesses, we would work together towards building a stronger, frictionless business operations SaaS and banking ecosystem for millions of MSMEs in India.”
The Fintech sector in India
The Indian fintech industry is expected to reach USD 1.3 Trillion. It will grow to a CAGR of 31% by 2025. Despite the funding winter warnings, the investment keeps pouring into the fintech segment.
Fintech app ARTH raised USD 2.5 Mn in its Pre-Series A funding. DEG and MIT Alumni Network led the round for ARTH. Earlier, a few weeks ago, FlexiLoans raised USD 90 Million in its Series B round. Besides fintech unicorn slice raised USD 50 Million.
Chartered Accountants Biswajit Mishra and Kapil Rana co-founded HostBooks in 2009. It is a fintech-focused cloud-based platform that offers accounting and compliance functions to small and medium enterprises (SMEs). The startup helps SMEs manage their accounting practices and technicalities such as tax, GST, TDS, e-way bill, E-invoicing, income tax, and payroll.
At present, HostBooks caters to 250K small and medium enterprises. It claims to have reduced its clientele business operations expenses by 70%. SahiGST, Vyapar and ClearTax are its competitors.
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