OkCredit, which helps merchants keep track of payments and credit records via a mobile application, has raised $15.5 million (Rs 107.73 crore at the current exchange rate) in a Series A funding round led by New York-based investment firm Tiger Global.
Morningside Venture Capital, Lightspeed India Partners, Venture Highway and Y Combinator were among the other investors who participated in the round, OkCredit said in a statement.
The company will use the fresh capital to expand its merchant base as well as create and staff teams in verticals such as product, technology and digital banking.
“Our software helps India’s business-to-consumer and business-to-business micro merchants to get organised and be efficient,” OkCredit co-founder Harsh Pokharna said.
Tiger Global partner Scott Shleifer said the firm believed that the startup was in a position to become a market leader in the cloud-enabled software segment for merchants.
OkCredit, which is operated by Psi Phi Global Solutions Pvt. Ltd, has raised $17 million in all since its inception. The company says that it has reached an installation base of 1.3 million merchants and that about 900,000 of them are using the platform every month.
Founded by Pokharna, Gaurav Kumar and Aditya Prasad, OkCredit says it connects small business owners, suppliers and customers and enables them to record credit and payment transactions. Merchants can use the company’s mobile app to keep track of sales and purchases and also send payment reminders.
OkCredit is the latest startup to be funded by Tiger Global, which has made a series of investments in recent months. It is one of the most active venture capital investors in Indian companies with around 50 firms in its portfolio.
Tiger Global has backed unicorns including e-commerce major Flipkart, classifieds platform Quikr and ride-sharing firms Ola and Uber. It exited Flipkart last year when Walmart Inc. bought the online retailer.
After a lengthy hiatus in India, Tiger Global has been on a dealmaking spree in the country of late. It has made at least nine investments over the past three months alone, with business-to-business (B2B) bets emerging as a theme,
In May, Tiger Global co-led a Series B investment of $22 million (around Rs 196 crore) in logistics management startup Locus.
Also last month, it invested an additional $5 million (around Rs 34 crore) in The Viral Fever, an over-the-top (OTT) platform which creates original video content.
*This article has been updated to include comments from OkCredit and Tiger Global.