[Funding alert] Why IndiaMART invested Rs 36Cr in B2B startup Vyapar
B2B ecommerce firm IndiaMART has announced an investment of Rs 36 crore (approx $5.4 million) in Vyapar, a mobile-based business accounting software for small businesses.
In a statement, the company said that the Series A investment round in Bengaluru-based Simply Vyapar Apps Pvt Ltd, owner of Vyapar, also included existing investors India Quotient and Axilor.
‘Vyapar’ is an invoice accounting and stock inventory app, which can be used by small and medium businesses for billing Goods and Services Tax (GST) invoices, managing stock inventory, and accounting solutions.
Speaking about the investment with YourStory, Dinesh Agarwal, Managing Director, IndiaMART said that the company found about Vyapar when it was looking for something on the mobile. The team found it to be a very suitable product for small businesses in India.
He said that accounting software is mostly desktop-driven and operated by accountants because of several reasons, including heavy accountancy terms. So small and medium businesses in India needed a desktop, software, and a muneemji or an accountant to handle accounts.
He also highlighted that Vyapar recorded more than one million app downloads and has a rating of 4.6 on the Google Play Store. In fact, the startup claims to have recorded revenue of Rs 1.4 crore in the last financial year.
"We feel that going forward, the startup should be able to add a lot of value in areas of invoicing, accounting, inventory management, and GST. We are moving in the right direction as we have been working with small businesses and our vision to make India an easy place to do business by adopting technology, along with internet and mobile," Dinesh added.