Vyapar, a business accounting platform, raises $30M in a Series B round

Bengaluru-based Vyapar, which operates an online business accounting platform, has raised $30 million (approx. Rs 224 crore) in a Series B funding round led by WestBridge Capital and existing investors -- IndiaMart and India Quotient. The round also saw participation from Fortytwo.vc.

Previously, the startup had raised around $5 million in a Series A round in September 2019, led by India Quotient and IndiaMart. Concluding the current round, Vyapar has raised over $35 million in funding till date.

Vyapar helps small businesses generate bills and GST invoices, manage transactions, make smart decisions on inventory purchases, and provide access to accounting reports on smartphones to owners.

“We want every small business in India to have a technology-based business management solution that is very simple to use, is accessible to all, and is affordable," Shubham Agrawal, Co-founder & CTO at Vyapar.

The platform enables businesses to keep a track of inventory purchases and helps them reduce expenses while providing an overview of transactions. "A good part of business operations can be managed quite easily through tech and as a result, the whole focus of a business owner can be on growth, efficiency, and profitability,” Shubham said.

Vyapar says the raised funds will be used towards its growth through digital and other distribution channels. Apart from this, It will also focus on hiring talent and plans on scaling up work on new revenue-generating streams with the capital.

Founded in 2016 by Sumit Agarwal and Shubham Agarwal, The Bengaluru-based firm claims to have grown 5x and its team has increased to over 300 employees from 60 previously, it said.

“We are extremely thrilled to have WestBridge Capital on board to back us on our mission to digitize the entire ecosystem of MSMEs in India. Also, having strong participation in this round from our existing investors IndiaMart and India Quotient gives us a lot of confidence and of course expertise to become a market leader in this segment,” said Sumit Agarwal, Founder & CEO at Vyapar.

Speaking on the investment, Sandeep Singhal, Co-founder & Managing Director of WestBridge Capital, said: “MSMEs are the backbone of our economy. Vyapar is on a mission to digitize the MSMEs of India and help them grow. We have been very impressed with Sumit and Shubham’s understanding of the challenges faced by Indian MSMEs and insights around how to solve them in the right way. We are excited to join hands with Vyapar and help in their next phase of growth."

It's worthy to mention Vyapar is not the only player in its market. Other startups such as Sequoia-backed Khatabook and MyBillBook are also competing in the same sector. In August 2021, Khatabook had scooped up $100 million in funding US-based venture capital firms Tribe Capital and Moore Strategic Ventures (MSV).

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