Digital ledger start-up Khatabook, on Thursday announced its first ever acquisition of software as a service accounting app Biz Analyst for $10 million, in a mix of cash and equity.

Khatabook will now be able offer premium subscription services like automatic resolution and digital invoicing capabilities to its 8.5 million monthly active merchant partners. For Khatabook’s mid-size retailers, the attainment of Biz Analyst also provides them the opportunity to deploy real time business analytics and receive ledger reports.

These features are a part of Khatabook’s strategy to boost revenues. Khatabook also looking to go up the value chain and bolster its presence across wholesalers, suppliers, traders and manufacturers in the supply chain with the Biz Analyst’s platform.

Ravish Naresh, chief executive officer and co-founder, Khatabook, states, “When a kirana orders inventory from suppliers, there are two separate entries being created one with the retailer and the other with the supplier. Through Biz Analyst’s platform both retailer and manufacturer’s ledger can reconcile automatically, with both parties having visibility to each other's statements, avoiding any slippage. Our vision is to get the Indian supply chain on one platform.”

The Biz Analyst team will continue to run self-sufficiently, retaining Mumbai operations while maintaining synergies with the Khatabook headquarters in Bengaluru. The original co-founding team of Biz Analyst will also now be a part of Khatabook’s leadership team.

Ravish adds, “At Khatabook, our mission is to help SMEs manage their cash flows. A part of this is also to help these businesses recover their money. Through integration of both platforms, SMEs can now send automated reminders to customers and partners for outstanding payments, while providing payment tools such as payment links and get automatic reconciliation once the dues are paid."

The founders of Biz Analyst, Vaibhav Vasa and Mehul Sutariya, states, “We are thrilled to join forces with Khatabook, a company whose core values and mission resonate with ours. Together, we look forward to expanding the digital adoption by SMEs through our affordable SaaS solutions and connecting businesses across different verticals onto a single platform.”

Khatabook plans to disrupt digital invoicing and goods and services tax (GST) collections for micro, small and medium enterprises (MSMEs), with the launch of a separate app in the second quarter of 2021. The company recorded close to 1.03 billion transactions on its platform last year worth 100 billion.