In its Series A investment round, HostBooks acquired $3 million in debt financing. The funding will be used by the fintech startup to expand its operations as well as existing product line.
HostBooks, a Gurugram-based finance business, has raised $3 million in debt financing in its Series A fundraising round. Razorpay, a fintech startup, led the round.
HostBooks plans to utilize the funding to expand its operations and expand its existing product line. It will also invest in the development of new tools to help with order administration, neo-banking, sophisticated inventory and production management, and an AI-based posting and recommendation system.
Harshil Mathur, CEO and cofounder of Razorpay, stated, “It is encouraging to see that firms like HostBooks are playing a crucial part in fostering a vibrant growth environment for small businesses. With a common objective of supporting company growth, we will collaborate to create a better, seamless business operations SaaS and banking environment for millions of MSMEs in India.”
HostBooks, founded in 2009 by chartered accountants Biswajit Mishra and Kapil Rana, is a cloud-based platform that provides accounting and compliance operations to small and medium-sized businesses (SMEs). The firm primarily assists SMEs in the management of their accounting, tax, GST, TDS, e-way bill, E-invoicing, income tax, and payroll.
Rana, founder of HostBooks, stated, “We are simplifying and automating the whole company process by focusing on the origins of the transactions, banking, accounting, and tax compliances with an integrated end-to-end business management system,”
According to the statement, HostBooks serves 250K small and medium-sized businesses. The company claims to have assisted its clients in reducing business operating expenditures by 70%.
In the financial industry, HostBooks has competition from SahiGST, Vyapar, and ClearTax.
According to a research, the Indian fintech market is expected to reach $1.3 trillion by 2025, increasing at a CAGR of 31%. The fintech industry has made important contributions to the business ecosystem over the years by addressing credit demands, providing new-age investment options, and automating company activities through SaaS solutions.
ARTH, a finance app, just received $2.5 million in Pre-Series A investment 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, and the family offices of Harry Banga and Yogesh Mahansaria, among others.
In addition, Tiger Global, Moore Strategic Ventures, Insight Partners, and GMO VenturePartners contributed $50 million to another financial startup. The monies would be used to extend the company’s UPI.