Vyapar App is a significant player in the Indian MSME sector, providing simple and effective accounting and inventory management solutions. The idea behind Vyapar was born out of a personal need and a vision to simplify business operations for small and medium-sized enterprises.
The vision for Vyapar App began when Sumit Agarwal, the founder, observed the tedious and time-consuming process his family members went through to manage their business finances. Sumit, who was working at Intuit’s QuickBooks at the time, realized the need for a user-friendly accounting solution that even a layperson could use[1].
Sumit's personal experience and professional background intersected, leading him to create an app that would help his family and other MSMEs manage their finances more efficiently. This personal connection drove the development of Vyapar, which was initially built for his cousin's furniture manufacturing unit.
The early days involved Sumit and his co-founder, Shubham Agrawal, learning Android app development and writing the first lines of code in their spare time. Despite the challenges, they were driven by their passion for the business idea and the potential to make a significant impact on MSMEs.
The founding team of Vyapar App consists of Sumit Agarwal and Shubham Agrawal. Sumit Agarwal, with his background in working for Intuit’s QuickBooks, brought valuable experience in accounting software. Shubham Agrawal, as the Chief Technology Officer, has been instrumental in the technical development of the app[2].
Later, they were joined by another co-founder, Ruqiya Irum, who contributed to the growth and development of the company. The founding team's diverse skills and shared vision have been crucial in shaping Vyapar into what it is today.
The team's commitment and dedication, even in the early stages when they had limited resources, were key factors in the app's success. Sumit Agarwal used his savings of Rs 8 lakh to pay salaries for the first six months, showcasing their determination to make the venture a success.
Vyapar App has undergone significant evolution since its inception. From its humble beginnings as a simple accounting solution to its current comprehensive platform, Vyapar has continuously adapted to the needs of MSMEs. Here’s a look at its journey and key milestones.
The initial concept of Vyapar was to create a mobile and desktop app that could help MSMEs manage their finances, collect payments, and keep track of inventory. The app was designed to be user-friendly, even for those with no accounting knowledge[1].
As the app gained popularity, it evolved to include more features such as generating GST reports, auto-calculating totals, and updating payables and receivables automatically. The app's simplicity and functionality made it a preferred choice for many MSMEs.
Today, Vyapar is available on both smartphones and desktops, allowing entrepreneurs to manage their business finances on the go. The app works with or without an internet connection, making it accessible in various environments.
Vyapar App has achieved several key growth milestones since its founding. Here are some notable ones:
Vyapar App has expanded its product portfolio to cater to a wide range of MSME needs. Here are some key features and expansions:
Vyapar App's technology infrastructure is designed to ensure high performance, security, and user experience. Here’s an overview of its core architecture and security framework.
Vyapar's infrastructure was initially hosted in the Oregon region, which caused latency issues for users in India. To address this, the company migrated its infrastructure to the Mumbai region and implemented a 4-tier architecture.
This architecture includes separate layers for the load balancer, application, database, and cache. The use of Application Load Balancer and Autoscaling behind the Load Balancer has improved the app's performance and scalability[3]).
The infrastructure is now automated, reducing the need for manual intervention. This includes the use of AWS WAF for filtering web traffic and protecting the frontend servers[3]).
Vyapar takes security and compliance very seriously. Here are some measures they have implemented:
Vyapar App has been innovative in its approach to accounting and inventory management for MSMEs. Here are some key innovations:
Vyapar App has made a significant impact in the Indian market, particularly among small and medium-sized enterprises (SMEs). Here’s a look at how the company has grown and expanded its influence.
Vyapar App has seen remarkable growth in its user base. Founded in 2016 by Sumit Agarwal and Shubham Agrawal, the app has now served over 10 million customers[7][8].
The app's user-friendly interface and comprehensive features have attracted a large number of SMEs. Users can manage their receivables and payables, handle inventory, send customized invoices, and receive payment reminders and transaction messages in multiple languages. This versatility has made it a go-to solution for many businesses.
The user base growth is also attributed to the app's ability to cater to diverse business needs. Whether it's a small retail shop or a medium-sized manufacturing unit, Vyapar App provides the necessary tools to streamline financial and inventory management.
Vyapar App has been expanding its market share steadily. In a competitive landscape dominated by other accounting software like Khatabook and OKCredit, Vyapar has managed to carve out a significant niche for itself.
The company's focus on providing better unit economics and steady growth has helped it stand out. While competitors were chasing growth and facing significant losses, Vyapar has maintained a more balanced approach, which has resonated with SMEs looking for reliable and efficient accounting solutions.
Vyapar's market share expansion is also driven by its strategic partnerships and continuous improvement in its services. The app's integration with various financial institutions and GST compliance experts has made it a preferred choice for businesses looking for comprehensive financial management tools.
Vyapar App has been instrumental in promoting financial inclusion among SMEs. By providing access to credit facilities and seamless payment integration, the app has helped many businesses manage their finances more effectively.
The app's collaboration with financial institutions allows users to access credit facilities directly through the app. This has been particularly beneficial for small businesses that often struggle to secure loans from traditional banking channels.
In addition to credit facilities, Vyapar App also helps businesses comply with GST regulations. The partnership with GST compliance experts ensures that users avoid penalties and stay compliant with the law, further enhancing their financial stability.
Vyapar App's financial journey has been marked by significant growth and strategic investments. Here’s an overview of the company’s financial performance and investment milestones.
Vyapar App has witnessed substantial revenue growth over the years. In the fiscal year 2022, the company registered an 84.3% growth in its operating revenue to Rs 20 crore from Rs 10.86 crore in FY21[8].
The revenue growth is largely driven by the increasing adoption of the app among SMEs. The app's ability to simplify accounting and inventory management has made it an essential tool for many businesses, leading to increased revenue from operations.
In FY23, the company saw a further 1.5X growth in revenue to Rs 32 crore, with revenue from operations contributing over Rs 20 crore. This growth underscores the app's growing importance in the financial management of SMEs.
Despite significant revenue growth, Vyapar App is still on its path to profitability. The company has been investing heavily in expanding its services and user base.
In FY22, the company's losses shot up 4.3X to Rs 26.61 crore from Rs 6.18 crore in FY21. This increase in losses is largely due to the rise in expenses, particularly in employee benefits and advertising & marketing costs.
In FY23, the losses continued to rise, with a 68% increase to Rs 44.7 crore. However, the company is working towards improving its EBITDA margins and reducing its operational costs to move towards profitability.
Vyapar App has secured significant investments to fuel its growth. The company has raised a total of Rs 266.76 crore over three funding rounds.
The latest funding round, Series B, was raised in January 2022 and secured over Rs 224 crore, led by WestBridge Capital. This investment has been crucial in helping the company expand its services and compete with major competitors like Khatabook.
IndiaMart is the largest shareholder in the company, holding over 25% of the company shares. The founders, Sumit Agarwal, Shubham Agrawal, and Ruqiya Irum, also hold significant stakes in the company.
Vyapar App's success is also attributed to its strategic partnerships. Here are some key partnerships that have enhanced the company's offerings.
Vyapar App has partnered with several banks and financial institutions to provide seamless financial services to its users.
These collaborations allow users to manage their finances, access credit facilities, and make payments directly through the app. This integration has simplified financial management for SMEs and made the app more appealing to a broader user base.
The partnerships also ensure that users can comply with financial regulations and avoid penalties. For example, the app's integration with banks helps in easy reconciliation of accounts and timely payment of dues.
Vyapar App has established partnerships with various merchants to enhance its services.
These partnerships help in providing additional services to users, such as customized invoices and payment reminders. Merchants benefit from these partnerships by getting access to a larger customer base and streamlined financial management tools.
The app also collaborates with merchants to offer special discounts and promotions, which helps in increasing sales and customer engagement.
Vyapar App has formed alliances with technology companies to improve its services and user experience.
For instance, the app has partnered with GST compliance experts to ensure that users are compliant with GST regulations. This partnership provides users with guidance and support, helping them avoid penalties and stay on the right side of the law.
The app also collaborates with technology firms to enhance its IT and communication infrastructure. This includes services like API integration, bulk SMS, and payment gateway charges, which are essential for the smooth operation of the app.
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