The startup helps small and medium businesses digitize their books of accounts, connects small business owners, suppliers and customers, and enables them to record credit and payment transactions. Merchants can use the company’s mobile app to keep track of sales and purchases and also send payment reminders.
The startup is also backed by China’s Morningside Ventures and US-based marquee startup accelerator Y Combinator. It last raised a Series A round of $15.5 million from these investors in June.
Harsha Kumar, Partner at Lightspeed India said “Lightspeed has been investing in the SME segment in India for years now and we deeply appreciate how complex user acquisition is for this segment. OkCredit represents a rare breed of companies that are discovering digital and viral growth in a market where traditionally, feet-on-street was the only acquisition strategy.”
OkCredit competes with another Y-Combinator backed firm, Khatabook, which raised $4 million from Sequoia Capital’s Surge program and other investors. According to an Economic Times report on July 2, Khatabook is in talks to raise a $20 million Series A from Sequoia Capital and Ribbit Capital, among others.
This article was first published on livemint.com