1.5 crore merchants, 23% of the Indian MSME segment, recorded transactions on Khatabook in FY 20-21. Here's the ‘2021 Mid-year Covid Impact' analysis, a small effort from our end to understand the MSME segment behavior based on insights from the Khatabook platform. 
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.
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.
Large businesses have been more sensitive towards the Pandemic induced restrictions as compared to medium and small businesses.
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.
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.
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 resolve and commitment to enable them has only grown stronger as small businesses have experienced a severe and prolonged impact of the pandemic.
If this mission excites you, do check out our #careers page khatabook.com/hiring
If this mission excites you, do check out our #careers page khatabook.com/hiring
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