Bookkeeping app mKhata launches following pre-seed funding
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The Lahore-based FinTech startup mKhata has just launched its free multi-lingual bookkeeping app for MSMEs following its Pre-Seed funding round led by 10Pearls Ventures. By helping digitize bookkeeping, the FinTech startup braces for great impact on Pakistan’s retail market, currently estimated at around $152Bn.
Founded in 2020, mKhata serves as a digital ledger to optimize bookkeeping for local corner shops (Kiryana) helping them unlock their full potential and promoting financial inclusion. The Lahore-based FinTech team aims to tap into the 6M+ MSMEs nationwide and empower them through robust and seamless financial technology.
Pakistan observed a quarterly, half-yearly, and yearly record in both VC funding invested in the FinTech sector and the number of deals closed by Pakistan-based FinTech startups. Based on our H1 2021 EVM FinTech Venture Investment Report, the FinTech ecosystem climbed up 9 ranks in H1 2021 to become Pakistan’s most funded industry driven by a busy transaction activity, where every fourth deal in Pakistan was closed by a FinTech startup in the first half of the year.
This latest funding round is positioned as the first step towards digital transformation for both mKhata and the MSMEs it will serve through the platform. This comes as part of a wave of digitization Pakistan has been experiencing since the beginning of the Pandemic, with startups like DigiKhata and CreditBook closing Seed rounds. Zeeshan Aftab, Director of 10Pearls Ventures highlighted the impact the platform could have on Pakistan’s local businesses “The MSME sector of Pakistan contributes significantly in terms of revenue, utility, and employment. Enabling this sector with the right technology can help boost small businesses, which in turn, would have a significant impact on our economy. The purpose of mKhata aligns very closely with our vision to use technology for good, and to transform businesses and lives.”
The mKhata app comes with automated collection reminders, free SMS transaction alerts, detailed reports, and online backups among other features. The FinTech startup plans to utilize its newly acquired funds to further support these offerings and grow its core operations. Reflecting on the mission of mKhata, Founder and CEO Umair Sheikh concluded “ mKhata is one of the few apps in Pakistan that will make the lives of small businesses easy. Using this app, consumers will be able to establish trust with MSME and businesses will have an opportunity to grow and move towards e-commerce.”
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