HostBooks, a Gurugram-based finance business, has raised $3 million in debt financing in its Series A funding round. Fintech unicorn Razorpay led the round.
The monies will be used to expand HostBooks’ operations and extend its existing product line. It will also use the funding to create new technologies that will help with order administration, neo-banking, improved inventory and production management, and an AI-based posting and recommendation system.
Razorpay’s CEO and cofounder, Harshil Mathur, stated, “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.”
HostBooks is a cloud-based platform that provides accounting and compliance tasks to small and medium businesses. It was founded in 2009 by chartered accountants Biswajit Mishra and Kapil Rana (SMEs). The company mainly assists small businesses with accounting, taxation, GST, TDS, e-way bills, E-invoicing, income tax, and payroll.
According to the statement, HostBooks serves 250K small and medium companies. According to the company, it has helped its clients save 70% on business operating costs. HostBooks’ fintech competitors include SahiGST, Vyapar, and ClearTax.
Indian fintech sector
According to studies, the Indian fintech sector is predicted to reach $1.3 trillion by 2025, with a CAGR of 31%. Fintech has made a significant contribution to the business ecosystem throughout the years by addressing credit demands, giving new-age investment possibilities, and using SaaS technologies to automate corporate tasks.
ARTH, a finance app, just received $2.5 million in pre-Series A funding from DEG and the MIT Alumni Network. FlexiLoans, a fintech business, raised $90 million in a Series B round this month from investors including MAJ Invest, Fasanara Capital, Harry Banga’s, and Yogesh Mahansaria’s family offices, and others.
In addition, Tiger Global, Moore Strategic Ventures, Insight Partners, and GMO VenturePartners each contributed $50 million to another financial unicorn. The monies will be utilized to extend the company’s UPI.