HostBooks, an Indian FinTech startup focused on micro, small and medium enterprises (MSMEs), has raised $3 million in a Series A round led by payments platform Razorpay.
As the companies said in a news release Friday (June 10), the funds will help HostBooks add to its product suite, develop new products that support its order management, neo-banking, advanced inventory & production management and AI-based business decision making tools.
“We share a common vision with Razorpay, which is to build the financial backbone for businesses in India and enable them to thrive,” said Biswajit Mishra, co-founder of HostBooks. “This funding is a major step forward in that direction.”
HostBooks said it helps small businesses with backend processes like compliance and accounting through its single sign-on collaborative platform, which hosts more than 250,000 businesses. Among the platform’s features is a built-in eDocument management system with free cloud storage.
“Small businesses are a major driver of the Indian economy, and we at Razorpay have been on a mission to enable them in every step of their growth journey,” said Harshil Mathur, CEO and co-founder of Razorpay. “It is promising to see that companies like HostBooks are playing a critical role in creating a thriving growth environment for small businesses.”
Read more: Data: Almost Half of India’s MSMEs Plan to Add Tech
The funding comes at a time when many MSMEs in India are seeking out new technology to help them cut costs, reach more customers and improve productivity.
As PYMNTS reported recently, 42% of micro-sized companies, 57% of small-sized companies and 53% of medium-sized companies have begun looking at these kinds of solutions, while 40% of smaller businesses have automated their sales.
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