Simply Vyapar Apps Pvt. Ltd, which runs business accounting startup Vyapar, announced on Wednesday that it has raised $30 million (about Rs 224 crore) in its Series B funding round led by WestBridge Capital.
Existing investors IndiaMart and India Quotient also participated in the funding round, Vyapar said in a statement. Fortytwo.vc also contributed to the investment cycle, he added.
Vyapar said it will use the new capital to boost its business through the digital and distribution channel. A portion of the funds will also be deployed to hire and scale up work on new revenue streams, according to the statement.
Vyapar was founded in 2016 by Sumit Agarwal, Ruqiya Irum and Shubham Agrawal.
The startup provides an accounting and inventory management platform for small businesses. Its services are available offline and help companies understand their assets, liabilities and value.
Agrawal, co-founder and CTO of Vyapar, said in the statement that the startup wants every small business in India to have a technology-based business management solution that is very easy to use, accessible and affordable for everyone. .
“A good portion of business operations can be managed quite easily through technology and therefore a business owner‘s entire focus can be on growth, efficiency and profitability,” he said. -he adds.
The release notes that Vyapar’s business has grown 5x and its team size has grown from around 60 to over 300 since it raised its Series A funding led by IndiaMart in 2019.
“We initially invested in Vyapar with strong confidence in the product and the team’s ability to execute at scale. It is really encouraging to see Vyapar growing multiple times since then – they currently have over 1 lakh paying customers,” said Dinesh Agarwal, Founder and Managing Director of IndiaMart.
Sandeep Singhal, Co-Founder and Managing Director of WestBridge Capital, noted that MSMEs (micro, small and medium enterprises) are the backbone of the economy and that Vyapar is on a mission to digitize Indian MSMEs and help them develop.
“We were very impressed with Sumit and Shubham’s understanding of the challenges facing Indian MSMEs and ideas on how to solve them in the right way,” Singal added.
WestBridge invests from its evergreen fund as opposed to a conventional private equity fund which raises a fixed sum and returns the money with gains/losses to limited partners towards the end of its life cycle, typically 10 years.
Earlier this month, he co-led a funding round in LEAD that catapulted the school edtech platform into the unicorn club of startups that boast a billion-plus valuation.
Last year, it invested in startups such as Skit, formerly known as Vernacular.ai, Bijnis, a platform that directly connects factories and manufacturers directly with retailers, and Otipy, a community platform group purchasing of fresh fruits and vegetables.