Chqbook, a neobank platform for small business owners, raised Rs 40 crore in a pre-series B round led by existing investor Aavishkaar Capital and Rajiv Dadlani Group. Earlsfield Capital UK, family offices and HNI investors such as Jeremy Lim, Bhupesh Kumar, Nilesh Srivastava and others also took part in the new round.
In March 2020, Aavishkar Capital had a $ 5 million Series one round Chqbook. The fresh proceeds will be used to accelerate user acquisition and empower technology, Chqbook said in a press release.
Chqbook gives small merchants or SMEs access to checking accounts, accounting services, loans and insurance. Most of their customers are either banking with PSUs or credit unions.
The four year old company claims to have over 650,000 transaction customers and an annualized transaction value of Rs 3,000 crore. According to Sharma, the company aims to lend over Rs 30,000 crore, open 1 million accounts and insure 10 million customers over the next few years.
The company recorded an almost 11-fold increase in operating sales to Rs 12.8 billion in FY20 from Rs 1.17 billion in FY19. During FY20, annual sales almost quadrupled to Rs 16.46 billion, while losses over the year increased 72.7% to Rs 6.4 billion.
Among the neo banking platforms aimed at SMEs, Chqbook competes directly with Open and PayO, while RazorpayX is also emerging as one of the leading neo banking platforms in this segment.
Recently, Open had started a new round to raise nearly $ 62 million from Temasek, Google and existing investors like Tiger Global Management and 3one4 Capital. Trickypedia would have exclusively reported the fundraiser on September 10th. According to sources, the company should receive more funds in the current round.