Lahore (Muhammad Yasir) mKhata, a Lahore-based fintech startup has launched its app, securing pre-seed funding from 10Pearls Ventures. mKhata is a free, multi-lingual bookkeeping app, aimed to help the MSME (Micro, Small and Medium Enterprises) sector digitize their bookkeeping and credit management.
Most local corner (kiryana) stores extend credit to customers in their neighborhood. This is either recorded on paper or not recorded at all. mKhata aims to digitize these transactions helping small businesses record and maintain credit history for their customers.
Pakistan’s retail market is currently estimated to be around $152 billion, with an annual growth rate of 8%. However, the market is not digitized hence limiting financial inclusion of people. Serving as a digital ledger, mKhata aims to achieve this and promote financial inclusion by tapping the 6 million-plus MSMEs nationwide, and empower them through robust and seamless financial technology.
The founder and CEO, Umair Sheikh, elaborating on the need of mKhata, said, “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.”
Speaking on the investment, Zeeshan Aftab, Director of 10Pearls Ventures said, “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. It is free and can be downloaded from both the App Store and Google Play Store.