Unique: digital bookkeping startup OkCredit explores M&A alternatives


Digital bookkeeping startup OkCredit has began to discover merger and acquisition alternatives regardless of ample runway. In line with 4 Entrackr sources, OkCredit has had preliminary talks with its rival Khatabook and others together with BharatPe and Udaan for potential consolidation. 

This transfer comes even supposing OkCredit has round $35 to $40 million money left within the financial institution which would offer round 18-20 months of runway to the corporate, added the sources cited above. 

“These talks came about up to now few weeks. Its prime backer Lightspeed had a dialogue with Khatabook by way of Sequoia,” mentioned one of many sources on situation of anonymity. “Khatabook provided a deal within the vary of $100 million that didn’t work for OkCredit.”

Sources additional mentioned that OkCredit is trying to get acquired at a valuation of over $150 million. 

“Discussions with BharatPe are nonetheless on however it’s extremely unlikely that the Delhi-based funds agency will spend $100 million on the acquisition,” added the second supply, requesting anonymity because the discussions are personal.

Sequoia and Khatabook declined to supply remark for the story whereas queries despatched to Lightspeed and OkCredit on Monday didn’t elicit any response. Responses from Udaan and can also be awaited. We’ll replace the story as and after they reply.

Launched in 2017, OkCredit was the primary bookkeeping app in India. The corporate additionally raised round $84 million inside 20 months of its launch, however Khatabook which was launched in a while scored over 30% lead when it comes to downloads. As per App Annie knowledge, OkCredit has 30 million lifetime downloads whereas Khatabook has been downloaded over 41 million instances.

On the subject of month-to-month lively customers, OkCredit has 1.4 million MAUs in September. Khatabook, however, has 3.88 million MAUs within the final month.

App Annie knowledge additional reveals that OkCredit has amassed 10.6 million downloads in 2020 whereas Khatabook recorded 21 million downloads within the first 10 months of this 12 months. 

As for weekly lively customers, there too OkCredit is lagging behind Khatabook with round 650K WAUs whereas the latter has 1.3 million WAUs. 

All these metrics clearly lean in direction of Khatabook holding pole place within the phase. 

Other than having a lead within the core enterprise, Khatabook can also be forward within the e-commerce enablement house. The corporate launched MyStore (beforehand Dukaan by Khatabook) in August and has been downloaded 2.2 million instances. 

A month later, OkCredit additionally launched an identical app underneath the title of OkShop. At current, it has lower than 250K downloads with 4,000 every day lively customers or DAUs. MyStore’s DAU at present stands at over 21,000.

“Khatabook has emerged because the chief in its phase and almost certainly it’s anticipated to proceed in the identical trajectory,” mentioned one of many individuals cited above within the story. “Lightspeed realized that OkCredit must be consolidated with a bigger participant as follow-on funding could be robust with the present metrics.”

Whilst OkCredit at present has the capital to run operations for the following 12 months and a half, it continues to discover merger offers. Why? Sources say it’s in anticipation of not having the ability to increase a big spherical sooner or later. “Valuation and future fundraising depend upon the expansion and OkCredit hasn’t been in a position to reveal that. Because of this, consolidation seems to be a method ahead,” mentioned the fourth particular person. 

Specialists within the house imagine that OkCredit and Khatabook, ought to they select to renew merger talks sooner or later, would kind a robust staff that enhances one another. “Khatabook’s USP lies in development hacking and fundraising. Whereas, the OkCredit staff is robust in tech and product. If they arrive collectively, they’d kind a formidable staff,” mentioned an trade knowledgeable, requesting anonymity. 

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