Acquisition project | Khatabook

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Acquisition project | Khatabook

Helluu

Context on Product, Users, and Market

Product

What is Khatabook?

Khatabook started out as an easy-to-use app to help small to medium shopkeepers in India move on from traditional physical-copy based ledger transactions (the bahi khata notebook).It allows merchants (business ownedhddrs and workers) to seamlessly add the transactions of the business, in an easy-to-read ‘You Gave’ and ‘You Got’ format.Today, Khatabook has developed into an all-in-one digital solution for these small to medium sized businesses, also providing them Main ledger and payment reminders service, inventory management, and billing features. It also provides business loans to qualified users.Building several revenue funnels- Khatabook Desktop, Khatabook PRO (beta), and lending business (business loans).

Understand the category, Market
1. Type in KWs of use cases that potential users might be typing in:
2. - accounting app
  - bookkeeping pp
  - hisab book for small business

competitors currently bidding on use cases and use case topics

Searching up what people are talking about of Khatabook- what shows up on the internet

high focus on billing and Khatabook Desktop as of now- trying to go beyond ledger service, siilar to competitors like Vyapar and my Billbook

When searching for uses of Khatabook, people see that it is used for ledger, inventory, and business management.
desktop ads for Khatabook on PC- new launch, reduced ad spend on the main free app
On google trends, searching for Khatabook's similar words w=gives names of competitors like Vyapar and my BillBook. Vyapar as a topic shows breakout on Google trends, which means that it has grown 5000% in the last one year- We will need to research going forward on how to ensure that upcoming increasing competition doesn't eat up traffic and direct potential users towards competitors
Reviews:
taking best ratings from play store- best ratings/ highest ones are talking about suggetsed product features and the use case of multiple additional features such as cashbook- going beyond the primary use case.

lowest ratings' reasons

pain points- app crashing, sms permissions, and payment-link related issues
What are people talking about on YouTube?
one negative video with high number of views, tutorials for new features,a nd most videos show use case of KB by both the company and other influencer

Did KW research on some use cases- shows competitors' ads only

accounting app
bookkeeping pp
hisab book for small business

Users

How I found users:

2 Power users
2 New active users
1 core ledger user

Power users were more liely to use features beyond the basic ledger book- these included inventory and bills features as well. In the user researc, I tried to uncover the exact use cases these potential ICPs could have for the App. Built the ICP accoridngly:

Category	Person X- Small Shop Owner - Basic Khata Focus	Person Y - Expanded Shop with Inventory Management Focus	Service Provider Z - Mobile Repair Shop	Freelancer Just Starting Out	Home-Based Business Owners	Small Manufacturing Unit Owners
Story/ Why have the hired the app?	Just wants to do hisaab-kitaab. X has a small neighourhood grocery store- often has a tab with households in the neighbourhood for their daily milk and bread needs. X has started collecting money through PayTM and has a PayTM soundbox. But has to remind customers to pay the remaining . remind when they see them in public to pay bill. Just started using online payment apps	person Y just expanded small shop. added more items to the shop- more brands. difficult to manage it on paper. saw ads and was suggested to use Khatabook by a friend to manage inventory and khata. has potential to become power user of khata, inventory, and bills together.	has a mobile repair shop in Nehru plaza of delhi. been running the shop for 5 years.	To manage invoices and payments for multiple projects easily.	To keep track of sales, expenses, and possibly manage inventory from their residence.	To streamline order management, production costs, and payments to suppliers and distributors.
Demography
Age	- Age: 30-50 years old	- Age: 28-45 years old	- Age: 25-40 years old	Young adults (20-35), Urban and semi-urban areas.	Adults (30-50), Residential areas in urban or suburban settings.	Middle-aged (35-55), Industrial areas or outskirts of urban centers.
Location	Tier-2 city, have a small shop in the heart of a city in a neighbourhood with pre-dominantly middle-aged families with children	Tier 1 city, high foot traffic commercial area	Small market in a metropolitan city	Young adults (20-35), Urban and semi-urban areas.	Adults (30-50), Residential areas in urban or suburban settings.	Middle-aged (35-55), Industrial areas or outskirts of urban centers.
Where do they spend time?	- Working hours dominate, with free time often spent within the community or with family entertainment - Youtube, Insta, Moj, video apps for Whatsapp Status	- Long working hours with commute; free time is limited, often spent in local entertainment or relaxation activities	- Flexible working hours with significant on-site service time; free time spent on tech or skill enhancement, and urban entertainment	Co-working spaces, cafes, home offices.	At home, online marketplaces, local community centers.	Factories, industrial supply stores, business meetings.

What is the frequency of those most used products/ features?				Daily use of invoice management and payment tracking.	Weekly use of sales tracking and daily expense management.	Daily use of order management features, monthly financial overview.
Details specific to the product				Simple invoice creation, payment reminders.	Inventory management, expense tracking, sales analysis.	Order tracking, cost management, supplier and customer account management.
Monthly Revenue	did not disclose			Variable, often project-based.	₹50,000 - ₹2,00,000 depending on the type and scale of business.	₹5,00,000 - ₹50,00,000 depending on orders and contracts.
Number of Employees	- 1-3 (including the owner)	- 3-5, includes part-time for expanded operations	- 1-5, varying based on demand and scale of operations	0-1 (mostly solo operations).	0-2 (family or part-time assistants).	5-50 (varies widely with business scale).
Business Goals	- To streamline udhar management, reduce outstanding credits, and increase digital transactions	- To manage expanded inventory and sales efficiently, and optimize financial operations using digital tools	- To streamline booking and service processes, enhance customer satisfaction through timely communication	To establish a steady client base and streamline financial management.	To grow the business while managing it efficiently from home.	To optimize production and increase market reach.
Unique Needs	- Digital ledger for udhar Online payment integration - Automated payment reminders - Make it easy to get back udhaar from customers	- Digital inventory management<br>- Integrated khata and billing solutions<br>- Efficient financial operations	- Digital service booking and scheduling<br>- Parts inventory management<br>- Digital invoicing and payment tracking	Easy invoicing, quick payment tracking.	Simple financial management, inventory overview.	Integrated order and financial management, supplier and distributor ledger.
Financial Management Style	- Traditional transitioning to digital for tracking sales, expenses, and udhar	- Integrating digital tools for sales, inventory, finances<br>- Expansion driven need for digital management	- Hybrid of traditional and digital for tracking service transactions, parts inventory, and customer dues	Digital-native, prefers automated tools.	Mix of traditional and digital, leaning towards more digital adoption.	Digital for financial transactions, traditional for inventory and production management.
Preferred Communication Channel	- Phone calls for reminders, in-person for reinforcing payment requests	- Digital channels for efficiency, prefers automated inventory and customer communication	- Digital communication (email, messaging apps) for booking and updates<br>- Phone calls for urgent service inquiries	Email, messaging apps.	Phone calls, social media.	Email, business communication platforms.
Frequency of giving udhaar				Rarely involves credit transactions.	Occasionally, to regular customers.	Frequently, to distributors and sometimes suppliers.
Pain points				Managing multiple client accounts and late payments.	Balancing business management with home responsibilities.	Managing production costs, supplier and customer credits.
Challenges	- Transitioning from manual to digital record-keeping, managing timely customer payments	- Managing a larger inventory - Maintain records fo sale keeping accurate financial records without a digital system	- Managing parts inventory, scheduling services efficiently, ensuring timely customer payments	Finding an all-in-one affordable solution.	Digitizing the home-based business process.	Integrating various operations into one digital platform.
Product				Khatabook's digital ledger and invoice features.	Khatabook's sales and expense tracking, inventory management.	Khatabook's order management, payment tracking, and ledger capabilities.
Frequency of giving udhaar
Technology Comfort Level	- Moderate; familiar with basic smartphone functions, recently started using online payment apps	- Moderate to high; comfortable with a range of digital tools for business management	- High; relies on technology for scheduling, inventory, and transaction management	High.	Moderate to high, depending on the individual.	Moderate, with varying levels across different roles within the business.
Adoption Curve	- Early Majority; recently adopted digital payment methods, open to trying new technology	- Early Adopter; sees the value in integrating digital tools early for business expansion	- Early Adopter; highly dependent on digital tools for business operations	Early adopter.	Early majority.	Early majority to late majority, depending on tech advancements in the sector.
Technical Comfort	- Moderately comfortable; needs user-friendly, intuitive solutions	- Comfortable with technology, willing to learn and adapt to new systems for efficiency	- Very comfortable; utilizes a variety of digital tools for business efficiency	Very comfortable with new software.	Comfortable, prefers intuitive solutions.	Comfortable with specific tools, cautious about new implementations.
Frequency of Usage	- Daily, for updating transactions and sending reminders	- Daily, with potential for multiple times a day as inventory and sales data are updated	- Multiple daily uses for booking, service tracking, and inventory management	Daily.	Daily for sales and expenses, occasionally for inventory.	Daily for order and payment management, weekly for financial overviews.
Other Tools Used	- Basic accounting software/apps, online payment apps, WhatsApp for communication with customers	- May already be using basic inventory management tools, looking to integrate with Khatabook for a holistic solution	- Scheduling and booking software, parts inventory management tools, online payment platforms	Project management apps, time tracking tools.	E-commerce platforms, social media for marketing.	ERP systems, industry-specific software.
Features They Value	- Simplicity, reliability, local language support, affordability, payment reminders	- Advanced features for handling large transactions and credit accounts, integration with inventory management systems handling multiple employees- childbook, multiple books, limited permissions	- Robust mobile app that allows for easy transaction tracking and invoicing from anywhere, multi-currency support, high-level security for financial data	Simplicity, efficiency.	User-friendliness, comprehensive financial overview.	Integration capabilities, scalability.
Frequency at Which They Use the Product	- Daily usage for financial entries and communication	- Multiple daily usages expected as business operations require constant updates and management	- Constantly throughout the day for various operational tasks	Daily.	sometimes if users ask for bills	only when needs to send bills to suppliers
Time Spent on Platform	- 1-2 hours daily, primarily for updates and customer interactions	- Expected to be higher, as inventory and financial management require more detailed attention	- Varies, but significant time is spent managing bookings, inventory, and financial transactions	1-2 hours per week.	2-3 hours per week.	3-4 hours per week.

Prioritizing ICPs:

Would prioritize the first 2 ICPs for the following reasons:

Usage of core features higher. Other ICPs a=have a faster adoption curve for tech but that is counterintuitively not good for Khatabook because these users will be more likelty to switch to other competitors who offermore sophisticared options. Khatabook wants to prioritize users who do not have any other easy-to-use alternatives, and need a radically easy platform to perform BASIC business entries' registration. Frequency of usage is similar to other ICPs, but higher chances of churn to competitors for the last 2. their frequency is lower and ad hoc based on demand. Small shop owener and the owner who opened new shop are more likely to use everyday as it ias a part of their daily operations

Core Value Proposition among most ICPs

Khatabook helps small to medium business owners track record of their business functions

Competitor and KW research to understand market and Khatabook's standing

For keywords analysis, I used a tool called app tweak to understand the top keywords that my app Khatabook, vs our competitors are bidding for on the Playstore. This will later be used to dictate our ASO efforts as well.

kw research using apptweak on playstore

Keywords		Vol.	Max. Reach	Diff.	Chance	KEI	Rank	Rank	Rank	Rank	Rank	●Installs
Query	Category	Search Volume	Potential Reach	Effort	Highest Chance	Keyword Efficiency- High Volume and High Chance- lowest time to get an outcome	Rank		potential monthly installs			Installs potential monthly installs	visit to install search result to CTR
khata book app kaise chalayen hindi mein	Brand Name	5	0	6	100	30	1	18	Unranked	41	9	0	0.00%
khata book app kaise chalaye	Brand Name	5	0	12	100	30	1	15	47	31	9	0	0.00%
khata book app kaise use kare	Brand Name	5	0	13	100	30	1	19	28	27	11	0	0.00%
Bpaytm	Competitor	73	6,681,124	92	48	70	210					14	0%
khata book install	Brand Name	5	0	13	100	30	1	21	29	30	10	0	0.00%
khatabook kaise use kare	Brand Name	5	0	16	100	30	1	22	28	32	11	0	0.00%
khata book kaise chalayen	Brand Name	5	0	16	100	30	1	24	71	41	11	0	0.00%
khatabook use kaise karen	Brand Name	5	0	16	100	30	1	11	35	28	10	0	0.00%
khata book aap	Brand Name	5	0	16	100	30	1	15	Unranked	22	9	43	860.00%
khatabook business money	Brand Name	5	0	16	100	30	1	14	49	9	6	0	0.00%
khatabook kaise use kare 2021	Brand Name	5	0	20	100	30	1	21	27	34	10	0	0.00%
khatabook application	Brand Name	5	0	22	100	30	1	9	43	19	10	0	0.00%
M vyapar	Competitor	46	226,322	16	79	79	8	1	23	3	98	0	27,659
khata book diary	Brand Name	5	0	26	100	30	1	15	49	24	10	339	6780.00%
M vyapar	Competitor	46	226,322	16	79	79	8					0	0%
khatabook credit	Brand Name	5	0	54	100	30	1	7	84	11	2	0	0.00%
khata book app how to use	Brand Name	5	0	13	99	30	1	23	28	25	12	0	0.00%
khatabook how to use	Brand Name	5	0	16	99	30	1	20	31	21	10	0	0.00%
khata book apps download	Brand Name	5	0	16	99	30	1	6	17	12	3	307	6140.00%
khatabook use	Brand Name	5	0	16	98	29	1	24	30	13	11	0	0.00%
ok credit	Competitor	38	78,622	74	94	82	2					86	0.11%
Bzoho	Competitor	38	81,477	26	73	66	159					0	0%
Bzoho books	Competitor	33	43,667	16	73	59	37					0	0%
invoice maker	Use Case	33	45,264	9	73	59	177	7	185	21	Unranked	0	0.00%
invoice	Use Case	31	33,636	11	73	57	Unranked	7	37	19	Unranked	0	0.00%
M billing app	Use Case	27	20,616	14	73	51	33	1	29	2	Unranked	22	81.48%
M billing app	use case	27	20,616	14	73	51	33	1	29	2	Unranked	22	879
accounting	Use Case	25	16,386	20	98	63	1	6	5	14	195	24	96.00%
M gst	Use Case	21	10,184	7	73	43	139	19	82	51	147	0	0.00%
M inventory management	Use Case	19	7,778	0	73	41	203	9	28	14	Unranked	0	0.00%
vyapaar	Competitor	17	5,858	7	73	38	27	1	29	7	95	0	716
business app	Use Case	17	5,727	75	65	34	33	9	Unranked	Unranked	47	48	282.35%
Bmybillbook	Competitor	14	4,051	20	76	35	8	2	24	1	49	0	73
M billing	Use Case	14	4,150	10	73	34	60	2	89	1	28	0	0.00%
M billing	use case	14	4,150	10	73	34	60	2	89	1	28	0	192
Bfree business app	Use Case	13	3,475	54	73	33	Unranked	20	62	Unranked	Unranked	0	0.00%
M vyapar billing app	Competitor	12	3,171	14	75	32	9	1	14	2	Unranked	0	388
hisab kitab app	Use Case	12	3,153	6	100	42	1	58	133	105	24	261	2175.00%
M business management	Use Case	12	3,339	4	73	31	Unranked	25	13	Unranked	Unranked	0	0.00%
invoicing	use case	12	3,170	14	73	31	Unranked	1	26	18	Unranked	0	240
M billing software	use case	11	2,901	16	73	30	37	2	27	1	Unranked	0	307
Bmy billbook	Competitor	10	2,636	16	73	29	14	2	27	1	Unranked	0	48
billbook	Competitor	9	2,277	20	75	28	9	2	31	1	61	0	36
hisab banane wala apps	Use Case	9	2,076	90	99	37	1	34	Unranked	239	2	0	0.00%
best accounting app	Use Case	9	2,221	19	91	34	3	5	2	11	64	0	0.00%
hisab jodne wala	Use Case	9	2,186	26	73	27	12	Unranked	Unranked	88	Unranked	0	0.00%
M invoices	Use Case	9	2,122	14	73	27	46	4	31	12	Unranked	0	0.00%
M free billing app	Use Case	9	2,132	11	73	27	54	3	32	13	Unranked	0	0.00%
M free billing app	use case	9	2,132	11	73	27	54	3	32	13	Unranked	0	69
M inventory	Use Case	9	2,256	0	73	27	Unranked	11	Unranked	18	Unranked	0	0.00%
payment reminder	Use Case	7	1,673	11	86	29	4	9	46	22	Unranked	0	0.00%
M gst bills	Use Case	7	1,732	17	73	25	32	3	78	2	116	0	0.00%
M gst bills	use case	7	1,732	17	73	25	32	3	78	2	116	0	101
M gst billing	Use Case	7	1,610	16	73	25	129	1	60	5	146	0	0.00%
M gst billing	use case	7	1,610	16	73	25	129	1	60	5	146	0	197
digital udhar khata book	Use Case	5	0	10	100	30	1	27	63	45	4	0	0.00%
best bahi khata app	Use Case	5	0	16	100	30	1	22	54	35	6	0	0.00%
how to manage digital udhar khata	Use Case Topic	5	0	20	100	30	1	24	47	38	2	0	0.00%
bahi khata app	Use Case	5	0	25	99	30	1	14	43	23	3	463	9260.00%
bahi khata	Use Case	5	0	9	98	29	1	23	109	96	7	76	1520.00%
Bkhata book app use	Use Case	5	0	13	98	29	1	22	24	29	14	0	0.00%
digital india ka digital udhar khata	Use Case	5	0	96	94	28	2	21	Unranked	Unranked	1	0	0.00%
digital khata app	Use Case	5	0	19	94	28	3	10	18	41	6	0	0.00%
M billing & accounting app	use case	5	0	23	86	26	4	2	8	3	104	0	0
M non gst bills	use case	5	0	15	73	22	16	3	Unranked	2	Unranked	0	0
M free bills	use case	5	0	18	73	22	18	2	60	1	30	0	0
billing app gst	use case	5	0	14	73	22	32	1	11	2	Unranked	0	0
M free billing	use case	5	0	14	73	22	48	1	26	3	Unranked	0	0
professional bill	use case	5	0	14	73	22	78	1	101	3	Unranked	0	0
best billing app	use case	5	0	14	73	22	95	2	42	3	195	0	0
M free invoices	use case	5	0	14	73	22	118	1	106	4	166	0	0
khatabook	brand name	33	45,210	28	100	78	1					215,965	477.69%
vyaapar	Competitor	5	0	21	73	22	26	1	25	3	Unranked	0	0
khata book	brand name	47	252,957	34	99	96	1					40,142	15.87%

the table helped me collate a list of low-effort, high volume keywords that Khatabook should be bidding on, and gives a rough idea for our forte right now. Among bahi khata and basic khata-related searches, Khatabook ranks on top. For queries related to billing and invoicing, competitors show up more

Acquisition channels' exploration

Paid Marketing:

Khatabook has been getting ~7 lakh organic installs since mid of 2022.

Recently, it has re-started paid marketing on Google and Facebook ads.

Khatabook is a mature-scale startup. At the beginning, we experimented with multiple online channels in 2019 for acquisition - such as TikTok ads, Lallantp, Google and Facebook ads, and programmatic ads during IPL. Through that data, we know that Google and Facebook ads got the highest volume. Hence, now Khatabook is focusing on scaling these 2 channels.

JTBD for this acquisition channel now- To get a high volume of good quality leads. Based on the most important and widely-used feature- the ledger, here are the metrics i will be using to mark ‘high quality’ leads-

Login success- users who logged in post install within one day of installing the app

NC- New Customer- Users who add at least one new customer within one day of installing the app- has a high correlation to high-retention users

XC- users who add at least 5 customers within one day of using the app. Users who do this have a high probability of actively using the app for transaction-management with those customers, inventory management basis sales to those customers, and billing for the said 5 customers.

Primary Success metric: No. of app installs completed

Current CAC of Google Ads-

At a spend of roughly ₹12L for this pilot experiment, we get an install base of 4L monthly. Hence, the CPI for the app would be ~₹3.

It would be difficult to calculate the LTV of all users on Khatabook. Instead, I looked at the industry benchmarks which is around ₹60 in this industry. As a result, we would aim to keep it below ₹60 and measure the success of all campaigns basis CPI being lower among other metrics of success.

Problem statement with the current acquisition channel (Google Ads):

A major % of the Google ads we run (>40%) are coming from search queries related to the brand name, Khatabook itself. As a result, the paid advertising might be eating into our organic installs, because users who are searching for Khatabook on the internet or on the App Store may already be high-intent users.
Goal- reduce the number of installs coming from brand search intent.
Experiments: I will use a two-pronged approach for the experiments, divided into Copy/SEO-based and creative experiments.

Experiment 1- Copy-based experiment

As khatabook-centric words are canibalizing my search intent ads, I will be replacing some brand-centric keywords with use-case, or use-case topic keywords that have a high potential number of installs and less difficulty, as seen from the keyword research above.
Keywords that I can replace-

Query	Category	Search Volume	Potential Reach	Effort	Keyword Efficiency- High Volume and High Chance- lowest time to get an outcome	Rank	Installs potential monthly installs
khatabook business money	Brand Name	5	0	16	30	1	0
khatabook kaise use kare 2021	Brand Name	5	0	20	30	1	0
khatabook application	Brand Name	5	0	22	30	1	0
best bahi khata app	Use Case	5	0	16	30	1	0
how to manage digital udhar khata	Use Case Topic	5	0	20	30	1	0

These are the KWs that have brand name, extremely low search volumes, and almost null potential installs.

To replace these KWs, I will use use case-based keywords with hgh potential search volumes and low effort. These long-tailed keywords would help bank on other keywords and get more installs. It will also help reduce Google Ads’ dependence on brand-based keywords.

Keywords I will be replacimng it with:

Query	Category	Search Volume	Potential Reach	Effort
invoice maker	Use Case	33	45,264	9
invoice	Use Case	31	33,636	11
M billing app	Use Case	27	20,616	14
M billing app	use case	27	20,616	14
accounting	Use Case	25	16,386	20
M gst	Use Case	21	10,184	7
M inventory management	Use Case	19	7,778	0

Hypothesis: Adding more use case based keywords would get Khtabook more users who are not yet acquainted to the app. It will also reduce the canibalization of organic installs coming from users searching from Khatabook. Increase number of users searching for use case and use-case based topis such as invoice and inventory management. Will allow for nicher audiences who need inventory and billing features, such as ICP 2 of the framework.

Success metric: Increase in number of installs of the KWs given above.

Experiment 2: Adding more creatives in the current ad sets.

Hypothesis: Adding and refreshing current creatives would signal to Google ads algorithm to spend more on creative-based channels- such as Youtube and display ads on websites.

Acquisition channel no. 2- Facebook ads

Problem statement: Users coming from Facebook ads are not adding any new 1st customers post login- which means that their chances of turning into an active user are low.

Experiment Goal: increase number of NC (first customer) of the installs coming from Facebook ads- Ie: increasing number of high-quality leads.

Experiment design: Creating lookalike audiencesCurrent CPI of Facebook is ₹5. Since we can afford to have a slightly higher CPI (taking the benchmark into consideration)- I will create another campaign on Facebook with a lookalike audience. Will optimize this campaign for NC instead of installs (might lead to higher CPIs due to a deeper success metric, but we can afford to do that as of now).

Cohort: Will upload user list of at least 1000 users already using the app who did NC within one day. Create a campaign of lookalike audience of the NC users. This was FB algorithm might look for users who have similar characteristics, gence may have a higher intent of adding NC sooner.

Hypothesis- these users’ NC% will increase from 50% to ~65%, which is what we get on Google Ads as of now.

Success metric: New customer addition (NC) percentage increasing

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