Khatabook’s 2021 Mid-year COVID-19 Impact Analysis is here

Aug 4, 2021

Insights on MSME outlook in India based on 8Mn+ Monthly Active users on Khatabook Platform


Informational summary of Khatabook’s Impact analysis for 2021, black and white picture of man sitting in grocery shop using a smartphone to check khatabook account. Other data is India’s GDP for FY20-21, MSMEs in India in Cr, 1.5 crore users for Khatabook, 23.4 of Indian MSMEs represented by Khatabook, 4.04% of Indian GDP recorded in Khatabook

Indian MSMEs are more resilient now compared to 2020. With over 8 million monthly active MSMEs from almost every district of India managing more than 264 million customers on the platform, Khatabook represents the largest MSME network in the country. The platform has recorded transactions with a cumulative value of more than INR 14 lakh crore to date. From an estimated 6.3 crore MSMEs in India, 1.5 crore MSMEs have recorded transactions on Khatabook in FY 20–21, representing 23% of the Indian MSME segment in FY 20–21. We are happy to share the MSME outlook in Khatabook 2021 Mid-year COVID 19 Impact Analysis.

Informational chart showing Covid-19 confirmed cases in India by WHO over March 2020-June 2021, with lockdowns and waves represented through shading, x-axis being timeline and y axis representing case count(red) and median credit per merchant(blue)

Lockdowns have a direct impact on MSMEs. In 2021, lockdowns are in line with the increasing COVID cases. So there is a direct link between COVID cases and a drop in business activities. The segment is yet to achieve full recovery to the pre-COVID levels of March 2020.

Splatter pattern showing Indian trade network for Jan20 - Jun21, top 3 interstate trade Delhi - Uttar Pradesh, Haryana - Delhi, Andhra Pradesh - Telangana, top 3 states engaged in Interstate trade, Delhi, Uttar Pradesh, Maharashtra

Between January 2020 to June 2021, Delhi and UP, Haryana and Delhi and Andhra Pradesh and Telangana exchanged the highest interstate trade with each other.

MSMEs from Delhi, UP, and Maharashtra, are most active in interstate business activities.

Chart representing sensitivity of businesses in India to the Pandemic-induced restrictions, 5 vectors: blue - Metro, red - tier 1, yellow - tier 2, green - tier 3, orange - tier 4; x-axis - Timeline from Jan-2020 to May-2021; y-axis - sensitivity measure from -0.5 to 0.5

The MSMEs across cities from all the Tiers have experienced more or less the same impact during the pandemic. The COVID second wave impact for Tier 1 and 2 cities has been slightly lower than metros, Tier 3 and Tier 4.

Chart representing sensitivity of businesses in India to the Pandemic-induced restrictions, 3 vectors: blue - large, red - medium, yellow - small; x-axis - Timeline from Jan-2020 to May-2021; y-axis - sensitivity measure from -0.75 to 0.75

Large businesses have been more sensitive towards the Pandemic induced restrictions as compared to medium and small businesses.

Pictorial representation of Covid-19 2nd wave impact by state in 2021, dark grey -10% to -20% credit given, light grey -6% to -10%, yellow 0% to -5% credit given. Most impacted states - Himachal Pradesh, Chattisgarh, Madhya Pradesh, Kerala & Uttarakhand, Least impacted states - Punjab, Jharkhand, Telangana, Bihar, Andhra Pradesh

MSME businesses in Uttarakhand, Kerala, and Madhya Pradesh are the most impacted in 2021 so far. Madhya Pradesh was also one of the most impacted states in 2020.

Business impact by categories split into 2 informational columns, 2020 & 2021, with 2 subsections, Most & least impacted, as follows: Most-2020: Construction, Trading, Automobiles; Most-2021: Textile, Automobiles, Trading; Least 2020: Computers, Food, Health; Least 2021: Health, Grocery, Transportation

Health, Grocery, and Transportation are the growth categories in 2021 despite lockdowns. The categories that need our close attention are automobiles, textile/apparel and footwear, as they continue to be the most sensitive categories to COVID lockdowns this year as well.

Khatabook is transforming MSMEs in India. Our commitment has only grown stronger as we have experienced a severe and prolonged impact of the Pandemic.

If our mission excites you, do check out Khatabook #careers page.