Biz Analyst enables SMEs to adopt digital infrastructure

Biz Analyst, a software-as-a-service (SaaS) startup known for bringing smart business management to small enterprises, was recently acquired by fintech startup Khatabook. "This is the first acquisition by Khatabook, which will now offer premium subscription services such as automatic reconciliation and digital invoicing capabilities to its 8.5 million monthly active merchant partners," says Mehul Sutariya, Co-Founder of Biz Analyst in an exclusive interview with Bizz Buzz

What is Biz Analyst and what problem are you solving?

Biz Analyst helps SMEs grow faster by supporting them with business analytics on the go, without having to invest heavily in resources or time. We realised small businesses do not have the working cash flow or ability to invest in dedicated business analysts. While setting up a team or resources in this segment may be expensive, business owners have every right to have their business data deciphered easily in the palm of their hands.

Hence, Biz Analyst acts like a personal business analyst at a miniscule cost of Rs. 6 per day which enables SMEs with key data, reports and information that they need daily. It helps enterprises and entrepreneurs use the power of SaaS to bring more efficiency to their businesses by: Getting paid faster: when their customers receive timely reminders on outstanding, they get paid faster.

We automate their business by reducing their efforts and allowing them to work smartly by setting the reminders and letting the app do all the work. We improve their profits as they get paid on time. It not only helps in garnering profit but also in balanced cash flow and business growth. Customisation allows them to send reminders daily, weekly, monthly, or when the bill is due as per their preference and set a custom reminder schedule for each customer.

What are the industry wide challenges faced by MSMEs pertaining to their business management?

Business management is a relatively untouched segment as previously the industry wide focus was always on accounting and HR management solutions. It is available on both iOS and Android and is currently being used by close to 85,000 businesses across India, UAE, Africa, and Singapore.

B2B challenges: Initially, MSME owners had a very different mindset and were reluctant to spend on software solutions which they considered to be an unnecessary expense and not an investment. They also observed that some business owners initially saw SaaS modules as a recurring expense and preferred to pay a one-time cost with minimal renewal charges.

However, there is an acceptance for the SaaS model as a low entry cost. That helped them try out new and different solutions without worrying about long term investment and focus on what their business needs. This has led to ever-increasing demands from the emerging industries, due to which the Indian SaaS market is slated to grow to over $20 billion in 2022 from around $6 billion in 2019.

B2C challenges: Running a business is an overwhelming experience in itself; retail business owners feel added pressure when they must manage daily critical tasks like accounting that may or may not necessarily be their forte. They need the help of an account as navigating complex software like Tally can be a tedious and intimidating process.

Remote working during the pandemic induced lockdown has helped them realise that their decision making is heavily dependent on these resources for data access. And that's why a cloud-based accounting and business management platform like Biz Analyst is a viable option.

How have SMEs benefited through SaaS platforms like yours?

Currently, we hold more than 90-95 per cent of the market share in the segment that they are in as very few apps offer similar services. The app used by entrepreneurs and enterprises has enabled up to 20 per cent reduction in payment delays and an increase in sales after the adoption of Biz Analyst into their daily operations. Our main aim with this product is to make business owners independent. During our market research, we realised that MNCs have high salaried analysts who analyse the data for savings but smaller companies don't have that budget to hire such analysts. So, we wanted to act as analysts for these businesses.

Your company was recently acquired by Khatabook, tell us more about this and what prompted this decision?

This is the first acquisition by Khatabook, which will now offer premium subscription services such as automatic reconciliation and digital invoicing capabilities to its 8.5 million monthly active merchant partners. We had been receiving offers from other organisations for a while. But the difference between them and Khatabook was that they wanted us to do what we were already doing. They didn't want us to pivot in a different direction but wanted us to retain our essence. This was the best part that nothing changed when we closed the deal and signed the papers. They had a set of expertise in marketing, fundraising and product building. We had our own set of expertise. So, we started interacting and came to a consensus. In a typical situation, the founders leave, and the business pivots. But we wanted to ensure our team's protection, customer protection and that of the channel partners. All of this went into negotiation, making sure all these elements are secured. The Biz Analyst team will continue to run independently, retaining Mumbai operations while maintaining synergies with the Khatabook headquarter in Bangalore. Now as a part of Khatabook, our aim is to double the user base in 2021 and create bigger opportunities for the network of over 1,000 channel partners.

Does the acquisition by Khatabook change your revenue plan in any manner for 2021?

One factor that the Khatabook team was pleased to see was that we effectively managed our money and were profitable for over three years. We never overspent on anything. We carefully analysed before spending and negotiated wherever possible. This is one of the reasons that despite the pandemic, we were still able to hold close to the upward trajectory planned at the start of 2020. Another major factor that contributed to this is that Biz Analyst was able to be a cost-effective solution in the market and SMBs realised the importance of adoption of a digital infrastructure for sustenance. We're currently doing approximately Rs 6 crore a year and aim to reach three times that by the end of 2021.