Tencent-backed Indian fintech firm acquires accounting app in $10m deal

India-based fintech company Khatabook said it has acquired Biz Analyst, a software-as-a-service business management firm, in a US$10 million deal.

The Khatabook team/ Photo credit: Khatabook

The move will help Khatabook’s 10 million monthly active merchants avail additional features to improve their efficiency, including those in business analytics, sales force automation, and digital invoicing, it said in a statement.

Launched in late 2016, Biz Analyst helps small and medium-sized business owners make data-driven decisions by providing real-time access to their business data on mobile by connecting them with accounting software Tally.

Currently, Biz Analyst has over 80,000 paid users and aims to double its user base in 2021 for its network of over 1,000 channel partners.

The Biz Analyst team – a total of 70 people – will continue to run independently, keeping its Mumbai operations while maintaining synergies with Khatabook headquarters in Bangalore, the company said. Meanwhile, the co-founding team of Biz Analyst will be a part of Khatabook’s leadership group.

“This deal is our first strategic acquisition as we intensify our network effects up the supply chain and focus on monetization,” said Ravish Naresh, CEO of Khatabook. “The features and strengths that Biz Analyst offers are the perfect extension to our present business portfolio.”

Founded in 2018, Khatabook helps small firms track their businesses and manage credit through its platform. It also allows merchants to collect payments online and send periodic reminders to creditors via messages and reports.

Over the past year, the company recorded over 1.4 billion transactions with a cumulative value of more than US$100 billion.