Chqbook Company Profile

Background

Overview

Chqbook is India's first neobank dedicated to small business owners, including kiranas, merchants, chemists, and other proprietorships. Established in 2017 by Vipul Sharma, Rajat Kumar, and Mohit Goel, the company aims to drive financial inclusion by offering a comprehensive suite of financial services tailored for this underserved segment. These services encompass digital current accounts, instant business loans, insurance products, and a digital bookkeeping service known as Chqbook Khata. The mobile application centralizes daily financial transactions and provides on-demand access to a diverse range of financial products, thereby assisting small business owners in managing their finances efficiently.

Mission and Vision

Mission: To empower small business owners through a financial control center by offering them product choice backed by superior customer experience.

Vision: Make India’s small business owners financially fitter.

Industry Significance

Chqbook addresses the significant gap in financial services for small business owners in India, a group that contributes substantially to the country's economy but often lacks access to formal financial products. By providing tailored solutions, Chqbook plays a pivotal role in promoting financial inclusion and supporting the growth of small businesses across the nation.

Key Strategic Focus

Core Objectives

Financial Inclusion: Bringing underserved small business owners into the formal financial ecosystem.

Comprehensive Financial Services: Offering a one-stop solution for banking, lending, insurance, and bookkeeping.

Customer-Centric Approach: Delivering superior customer experience through a user-friendly mobile platform.

Areas of Specialization

Digital Banking: Providing zero-balance digital current accounts with instant onboarding.

Lending: Offering short-term and long-term business loans tailored to the needs of small business owners.

Insurance: Providing business, health, life, and auto insurance solutions designed for small businesses.

Bookkeeping: Introducing Chqbook Khata, a free digital bookkeeping service for managing daily transactions.

Key Technologies Utilized

Mobile Application: A multilingual app facilitating easy access to financial services.

Artificial Intelligence: Utilized in the TARA AI engine for assessing customer eligibility and personalizing financial solutions.

Data Analytics: Employed to analyze transaction patterns and offer customized financial products.

Primary Markets Targeted

Geographical Focus: Serving small business owners across India, with a significant presence in Tier II and Tier III cities.

Customer Segment: Small business owners, including kiranas, merchants, chemists, and other proprietorships.

Financials and Funding

Funding History

Total Funds Raised: Approximately ₹40 crore in a pre-Series B funding round led by Aavishkaar Capital and the Rajiv Dadlani Group.

Recent Funding Rounds: The pre-Series B round in September 2021.

Notable Investors: Aavishkaar Capital, Rajiv Dadlani Group, Earlsfield Capital UK, and individual investors such as Harsha Bhogle, Bharat Shyam, Ken Glass, Rohit Chanana, Bhupesh Kumar, Amit Manocha, Amit Singal, Nilesh Shrivastava, and Sakshi Vij.

Utilization of Capital

The funds have been allocated towards:

User Acquisition: Expanding the customer base across various cities.

Technology Enhancement: Strengthening the technology platform to support a growing user base.

Product Development: Introducing new financial products and services tailored for small business owners.

Pipeline Development

Key Pipeline Candidates

Digital Current Account: Launched in November 2022, offering zero-balance accounts with instant onboarding.

Chqbook Khata: A free digital bookkeeping service for managing daily transactions.

Insurance Products: Business, health, life, and auto insurance solutions designed for small businesses.

Stages of Development

Digital Current Account: Launched and operational.

Chqbook Khata: Launched and actively used by customers.

Insurance Products: Launched and available to customers.

Target Conditions

Digital Current Account: Small business owners seeking accessible banking solutions.

Chqbook Khata: Small business owners needing efficient bookkeeping tools.

Insurance Products: Small business owners requiring affordable insurance coverage.

Anticipated Milestones

Digital Current Account: Achieving significant user adoption and transaction volume.

Chqbook Khata: Expanding user base and enhancing features based on user feedback.

Insurance Products: Increasing policy uptake and expanding coverage options.

Technological Platform and Innovation

Proprietary Technologies

TARA AI Engine: An artificial intelligence engine used for assessing customer eligibility and personalizing financial solutions.

Multilingual Mobile Application: A user-friendly app available in multiple languages to cater to a diverse customer base.

Significant Scientific Methods

Data Analytics: Analyzing transaction patterns to offer customized financial products.

Machine Learning Algorithms: Utilized in the TARA AI engine for personalized financial solutions.

Leadership Team

Vipul Sharma: Founder & CEO

Professional Background: Over two decades of experience in product, portfolio, and business development, with previous roles at IndusInd Bank, HDFC Bank, Citibank, and ICICI Prudential Life.

Key Contributions: Leading Chqbook's vision and strategic direction.

Rajat Kumar: Co-Founder & COO

Professional Background: Over two decades in sales and distribution, with experience at IndusInd Bank and Standard Chartered Bank.

Key Contributions: Overseeing operations and ensuring seamless service delivery.

Mohit Goel: Co-Founder & CMO

Professional Background: More than two decades in sales and marketing across industries including insurance, mutual funds, and telecom, with associations with brands like Hutch (Vodafone), ICICI Prudential MF, Tata AIG General, and ING Vysya.

Key Contributions: Driving marketing strategies and brand positioning.

Competitor Profile

Market Insights and Dynamics

Market Size: The SME lending market in India represents a $1 trillion opportunity for fintechs by 2023.

Growth Potential: Significant expansion opportunities exist as small businesses increasingly adopt digital financial solutions.

Competitor Analysis

KhataBook: Offers digital ledger services for small businesses.

OkCredit: Provides digital bookkeeping solutions for small merchants.

Vyapar App: Offers accounting and invoicing solutions for small businesses.

Strategic Collaborations and Partnerships

NSDL Payments Bank: Partnered to launch a zero-balance digital current account for small business owners.

ICICI Lombard General Insurance: Collaborated to offer shop insurance coverage for small business owners against climate risks.

Operational Insights

Strategic Considerations

Market Position: Chqbook holds a unique position as a comprehensive neobank catering specifically to small business owners in India.

Competitive Advantages: A holistic suite of services, a user-friendly mobile platform, and strategic partnerships with established financial institutions.