OkCredit has raised USD 67 million in series B round led by existing investors Lightspeed Venture Partners and Tiger Global. The company plans to use the fresh capital to expand its business in India.
OkCredit is a mobile based solution for small business owners and their customers to enable recording of credit/payment transactions digitally. Earlier, the company had raised USD 15.5 million in Series A led by Tiger Global. Morningside Venture Capital, Lightspeed India Partners, Venture Highway and Y Combinator had also participated in the round.
The Bengaluru-based digital application provider claims to have more than 1.7 million active merchants with 100% month-on-month growth over last six months.
OkCredit’s competitors include Khatabook and digital payment players such as Bharatpe, Paytm, PhonePe etc. “OkCredit represents a rare breed of companies that are discovering digital and viral growth in a market where traditionally, feet-on-street was the only acquisition strategy,” Harsha Kumar, Partner at Lightspeed India, told Economic Times.
India’s digital payments industry is estimated to grow to USD 1 trillion by 2023.
“Technology has moved from collecting payments in cash, to using POS machines. More recently, QR codes, paper bills turned to printed bills. But the one thing that has not changed is the fact that most customers still purchase goods on credit recorded in a notebook,” OkCredit’s cofounder Harsh Pokharna told Economic Times.
The company was founded in 2017 by Pokharna, Gaurav Kumar, and Aditya Prasad.