HisabKitab, a cloud native accounting startup, has raised a seed round of funding at a valuation of Rs 20 crore. The company was founded by CA Shrigopal Malani and CA Abhinav Sharma, who serve as co founders. The startup is working to bring AI powered accounting tools to millions of small and medium businesses in India, an area that has largely depended on outdated and disconnected systems for years.
Solving a real problem for millions of businesses
India is home to more than 63 million MSMEs that form the backbone of its economy. Despite their scale and importance, a large number of these businesses continue to manage their finances using spreadsheets, manual bookkeeping methods or software tools that do not talk to each other. This often leads to inefficiency, errors and wasted time for business owners who are already stretched thin.
HisabKitab wants to change this by offering a single platform that brings together billing, bookkeeping, GST compliance, financial reporting and business intelligence. Instead of using multiple disconnected tools, businesses will be able to manage all their financial operations from one place, with artificial intelligence handling repetitive and time consuming tasks automatically.
What the fresh funding will be used for
With the new capital, HisabKitab plans to develop what it calls an advanced AI Intelligence Layer. This will include an AI powered audit agent, an AI based tax preparation tool, and automation systems for both accounts receivable and accounts payable. The goal is to give small business owners smarter financial insights without requiring them to have deep accounting expertise themselves.
Beyond product development, the company also intends to strengthen its CA Partner Program, which connects chartered accountants with the platform. Alongside this, HisabKitab is looking to speed up customer acquisition and grow its product and engineering teams to support the expansion.
A shift in how accounting could work
The broader idea behind HisabKitab’s approach is that accounting is moving away from manual data entry and toward AI assisted decision making. Just as artificial intelligence has already changed how coding, marketing and customer support functions operate, the company believes accounting is next in line for this shift. Rather than simply recording numbers, the aim is to help business owners make faster and more informed financial decisions using AI as a support system.
With SMEs forming such a large part of the Indian economy, tools that simplify compliance and financial management could have a wide impact if adopted at scale. HisabKitab’s latest funding round signals growing investor interest in fintech solutions built specifically for the everyday needs of small and medium businesses in the country.
