Razorpay helps FinTech HostBooks raise $3 million

HostBooksan Indian FinTech startup focused on micro, small and medium-sized enterprises (MSMEs), raised $3 million in a Series A funding round led by the payments platform Razorpay.

As the companies said in a Press release On Friday (June 10), the funds will help HostBooks add to its product suite, develop new products that support its order management, neo-banking, advanced inventory and production management, and AI-based business decision making.

“We share a common vision with Razorpay, which is to build the financial backbone of businesses in India and enable them to thrive,” said Biswajit Mishra, co-founder of HostBooks. “This funding is a big step in that direction.”

HostBooks said it helps small businesses with backend processes like compliance and accounting through its collaborative single sign-on platform, which hosts more than 250,000 businesses. Among the features of the platform is an integrated electronic document management system with free cloud storage.

“Small businesses are a major driver of the Indian economy, and at Razorpay, we’ve made it our mission to help them at every stage of their growth journey,” said Harshil Mathur, CEO and co-founder of Razorpay. “It’s promising to see companies like HostBooks playing a vital role in creating a thriving growth environment for small businesses.”

Read more: Data: Almost half of Indian MSMEs plan to add technology

The funding comes at a time when many MSMEs in India are looking for new technologies to help them cut costs, reach more customers and improve productivity.

As PYMNTS recently reported, 42% of micro businesses, 57% of small businesses, and 53% of medium businesses have started considering these types of solutions, while 40% of small businesses have automated their sales.