Accounting application provider OkCredit has raised $15.5 million (Rs 107.5 crore at current exchange rate) in its Series A funding led by New York-based Tiger Global Management and joined by Chinese early-stage fund Morningside Venture Capital. Existing investors Lightspeed India Partners, Venture Highway and Y Combinator also participated in the round.
OkCredit plans to use the fresh funds to further scale its merchant user base and expand team, among others, the company said in a statement.
OkCredit connects small business owners, suppliers and customers and enables them to record credit and payment transactions.
Launched in 2017 by IIT Kanpur alumni Harsh Pokharna, Aditya Prasad, and Gaurav Kumar, OkCredit claims 1.3 million merchants currently use its solution to process $2 billion worth of transactions on the platform every month.
“Our software helps India’s business-to-consumer (B2C) and business-to-business (B2B) micro merchants to get organised and be efficient. We have spread virally across all regions of India among kirana, mobile stores, pharmacies, restaurants, B2B traders and many other types of businesses,” Pokharna said.
OkCredit, which is operated and owned by Psi Phi Global Solutions Pvt. Ltd, has raised $17 million in all since it started.
“The market for cloud-enabled software for India’s merchants is young and growing rapidly. We believe OkCredit is a strong market leader and are excited to support them over the coming years,” Scott Shleifer, partner, Tiger Global, said.
OkCredit is the latest startup to be funded by Tiger Global, which has made a series of investments in recent months. It is one of the most active venture capital investors in Indian companies with around 50 firms in its portfolio.
Tiger Global has backed unicorns including e-commerce major Flipkart, classifieds platform Quikr and ride-sharing firms Ola and Uber. It exited Flipkart last year when Walmart Inc. bought the online retailer.
After a lengthy time gap, Tiger Global has been on a dealmaking spree in the country of late. It has made at least nine investments over the past three months alone, with business-to-business (B2B) bets emerging as a theme.
In May, Tiger Global co-led a Series B investment of $22 million (around Rs 196 crore) in logistics management startup Locus.
Also, last month, it invested an additional $5 million (around Rs 34 crore) in The Viral Fever, an over-the-top (OTT) platform that creates original video content.