Our goal is to empower small businesses with access to financial services: Chqbook CEO

Backed by Aavishkaar Capital, Rajiv Dadlani Group, Earlsfield Capital UK, Harsha Bhogle and others, Chqbook has raised $12 million so far. It recently tied up with ICICI Lombard to offer insurance cover to small businesses.

In an email interview Vipul Sharma, founder & CEO of Chqbook discusses the problems faced by small businesses, meeting requirements of current accounts, lending and insurance for such businesses and more. Edited excerpts:

What are the problems you are trying to solve for small businesses? How many small businesses are on your platform?

We are catering to small business owners, which are the backbone of the Indian economy, contributing 30% to India’s GDP. Small businesses often face financial constraints and struggle to access business banking, affordable credit and insurance.

To solve these problems, Chqbook offers small business owners a fintech app that includes a digital current account, business loans, and insurance. Our mobile app allows small business owners to access a diverse range of financial products. Currently, Chqbook has over 250,000 customers on its platform, and we continue to work towards expanding our reach.

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Chqbook provides current account services to small businesses. Banks also do this. What additional value does Chqbook provide to its users?One of the features we offer is a zero-balance digital current account, designed for small business owners such as kirana owners, chemists, and other such sole proprietorships. This means that users do not have to maintain a minimum balance, making it accessible for businesses of all sizes.

Another value-added feature is ease of opening an account through the app. The app is also available in eight languages.

Chqbook current account offer features such as digital and physical debit cards, bank statements and the ability to add and manage beneficiaries.

Additionally, Chqbook provides cash deposit points, making it convenient for users to deposit cash into their accounts. This feature can be especially beneficial for businesses that deal with cash transactions frequently.

Chqbook recently introduced shop insurance cover in collaboration with ICICI Lombard? What benefits (up to how much and annual premium etc) does this offer to small businesses?

The `shop insurance cover’ for digital current account customers has been launched in association with ICICI Lombard. Under this insurance, losses incurred by shop owners due to floods, earthquakes, lightening, storms, cyclones, fire and other climate risks will be covered, including any loss due to burglary of contents in the shop.

As per our internal survey recently, we found that only 20% of small business owners have insured their shops and contents, despite potential risks. Over 50% of shop owners feel they are not at risk, resulting in financial difficulties for many. 80% of these owners have had to use their savings, sell valuables, or take out loans to recover losses. Our partnership with ICICI Lombard General Insurance addresses this issue. By combining shop insurance solutions with our Digital Current Account, we offer small business owners access to financial services via smartphones.

How much capital have you raised so far and are you planning a fresh fund raise? If so, approx, how much?

Since inception Chqbook has raised $12 million in funding from investors, including Aavishkaar Capital, Rajiv Dadlani Group, Earlsfield Capital UK and angel investors including Harsha Bhogle, Bharat Shyam, Ken Glass, Rohit Chanana, Bhupesh Kumar, Amit Manocha, Amit Singal, Nilesh Shrivastava, and Sakshi Vij.

Currently, we are in early discussions with potential investors for our Series B fund raise to provide us with the necessary capital to support our growth plans.

Do you focus on specific industry segments or is it any kind of small business?

At Chqbook, we focus on serving small businesses across various industry segments in India. This includes a wide range of small businesses such as kirana shops, chemists, traders, restaurants, and other proprietorship businesses. In India, there are over 9 crore small businesses, largely sole proprietorships, with a turnover of less than 40 Lakhs per annum, which account for 30% of the country’s GDP. However, these businesses often face challenges in accessing financial services, including business banking, formal lending, and insurance.

What are your plans for the next 2-3 years?

We aim to be the primary fintech partner across current accounts, lending and insurance for the small businesses in India. Our goal is to enable mom and pop stores and small traders to have a tech enabled, fast app which helps them grow. We plan to onboard 2 million customers over the next 2 years and provide them with accounts, loans and insurance.