Khatabook Business Model: How Does Khatabook Make Money?

KhataBook made money management easy for small shops. Before, they used big paper books. Now, with the simple phone app, no more big books. It tracks cash, what’s owed, and more quickly and easily. People liked it because it helped small shops. KhataBook worked well because it was smart and made money in different ways. In the end, it made life easier for small businesses.

Khatabook: Overview

Khatabook is a digital ledger app for small businesses in India. It helps manage finances and track sales. It also records expenses through a mobile app. The app simplifies bookkeeping, making it easy for businesses to monitor their cash flow. Popular among small retailers and Kirana store owners, Khatabook replaced manual bookkeeping methods. Now, let’s explore its business model.


Company’s Name Khatabook
Type of Industry Fintech
Founded in 2018
Founders Ravish Naresh (CEO), Dhanesh Kumar, Jaideep Poonia, Ashish Sonone
Headquarters Bengaluru
Market valuation $600 million
Competitors Quicken, ProperConvert app, OkCredit

Working Strategy: How Does Khatabook Work?

KhataBook started as an expense manager but shifted focus to non-metropolitan cities. It became a cash management app for small business owners, a key move leading to its success. Now, let’s explore how KhataBook works—the heart of its business model, with various working strategies.

1. Digital Ledger

KhataBook acts as a digital ledger, replacing old-fashioned paper accounting. Business owners use it to note daily sales, monitor expenses, and keep digital accounts. This ensures a clear and organized record of financial transactions.

2. Mobile App Accessibility

KhataBook offers a mobile app that’s easy to download on smartphones and widely used by small business owners. Accessible on Android and iOS, it ensures convenience for users.

3. User-friendly interface

KhataBook’s app has a user-friendly interface, making it easy for those with limited tech knowledge to navigate and use effectively. The goal is to make financial management accessible to everyone, regardless of digital expertise.

4. Automated Calculation

KhataBook automates calculations, cutting down on manual work and errors. It handles tasks like totaling sales, tracking outstanding payments, and calculating profit/loss. This ensures businesses have accurate and current financial information easily accessible.

5. Payment Reminders

KhataBook’s standout feature is payment reminders, making it a star in digital ledgers. The app lets businesses send reminders to customers via WhatsApp or SMS for transactions or due payments. This aids in managing accounts receivable, ensuring timely payments, and boosting cash flow. The payment reminder feature is entirely free for users.

6. Invoice Generation

KhataBook lets users generate invoices using GST Billing Software directly from the app. This simplifies billing, helping businesses maintain professionalism with a clear breakdown of products or services provided.

7. Insights and Analytics

KhataBook provides insights and analytics features, helping businesses understand their financial performance. With reports and visualizations, it highlights trends, patterns, and key metrics. This empowers business owners to make informed decisions based on data.

8. Integration With Digital Payments

KhataBook integrates with digital payment platforms, enabling businesses to accept payments through UPI, mobile apps (e.g., Paytm, PhonePe), NEFT, RTGS, etc. This promotes a smoother transaction process, reduces reliance on cash, and supports financial inclusion.

9. Strategic Partnerships

KhataBook forms strategic partnerships with financial institutions, offering businesses access to services like loans and insurance directly through the app. This broadens financial options, enhancing growth prospects.

In the KhataBook app, managing customer debits and credits is centralized. For transactions, due payments, or collections, notifications are sent to customers via WhatsApp or SMS; this feature is entirely free. KhataBook also collaborates with RBI-approved NBFCs to facilitate loans.

  • Western Capital Advisors Private Limited
  • Lendbox- Transactree Technologies Private Limited
  • Liquiloans- NDX P2P Private Limited

10. Safety & Security

Safety is a top concern when managing finances through a mobile app due to increasing digital fraud. KhataBook is brilliantly designed to ensure your finances stay safe and secure. It stands out as one of the safest digital ledger books for businesses.

11. Multilingual Feature

KhataBook caters to a diverse audience in tier-2 & 3 cities, offering support in over 10 regional languages. Major languages include Hindi, Kannada, Bengali, Tamil, and English.

12. Word-Of-Mouth Marketing

KhaaBook harnesses the strength of word-of-mouth marketing. Satisfied users play a crucial role in spreading awareness by recommending the app to peers and business networks. This creates a ripple effect of positive referrals.

13. Digital Marketing

KhataBook boosts visibility and connects with its audience through digital marketing channels. This involves online ads, social media campaigns, and content marketing highlighting KhataBook’s benefits. Platforms like Facebook, Twitter, LinkedIn, and Instagram are used to connect, share success stories, and address user queries. Notable campaigns include “Naam hi kafi hai,” “Dil se local,” and “Business hua easy,” with the respective taglines.

  • Do you know? – a website focused on connecting users with professionals in bookkeeping, tax, and accounting across various industries, states, and language options. This U.S.-based platform offers a comprehensive directory for finding local and remote financial services, including specialty and software-specific options.


KhataBook’s business model centers on a free mobile app, streamlining financial management for small businesses. With a user-friendly interface, businesses can easily record sales, track expenses, and manage digital accounts. Core features are free, while additional revenue comes from value-added services and partnerships. KhataBook, through technology, empowers small businesses to streamline financial processes, make informed decisions, and access financial services. This innovative, accessible, and collaboratively-driven model supports the growth of small businesses in our digital era.