Zerodha’s Nikhil Kamath invests in KNAV Global accounting advisory firm

• Zerodha’s Co-founder Nikhil Kamath invests in KNAV Advisory, boosting its global presence.
• Founded in 1999 by 4 Mumbai-based CAs, KNAV was created to capitalize on the US-India business corridor.
• KNAV CPA Firm is now one of the fastest-growing firms, as recognized by Accounting Today.
• Ranked among the Top 300 CPA Firms to Watch, KNAV continues to make waves in the international accounting space.

KNAV gets minority investment 

KNAV Advisory Inc. recently announced that Nikhil Kamath has acquired a minority stake in the international accounting and business advisory firm.

Zerodha is an Indian financial services company (member of NSE, BSE, MCX) that offers brokerage-free equity investments, retail, institutional broking, currencies, and commodities trading.

Nikhil Kamath:

“We are thrilled to partner with KNAV, a firm that consistently demonstrates innovation and leadership in the accounting and advisory industry.

We seek businesses that not only show strong growth but also drive positive change within their sectors, making KNAV an ideal partner.

We believe this investment will further enhance KNAV’s ability to scale globally, providing top-tier services and setting themselves apart from the competition.”

Type of investment

Nikhil’s investment is merely the first step in a much larger, visionary commitment to KNAV’s growth.

Despite potential future funding rounds, Kamath’s stake is anticipated to remain a minority position.

This will ensure that the structure of this investment maintains KNAV’s autonomy in leadership and strategic decision-making.

Also read: US-India opportunity: How 4 CAs teamed up & built a thriving cross border accounting firm

How will the funds be utilized?

KNAV Advisory Inc. is set to leverage the investment to accelerate its ambitious growth strategy.

The influx of capital will fuel several key initiatives, including,

• Strategic acquisitions
• Talent recruitment
• Service expansion across various regions
• Technological advancements
• Expand international presence

This multi-pronged approach aims to solidify KNAV’s position as a global leader in the accounting and business advisory sector.

Nishta Sharma, CEO – KNAV Advisory Inc.:

“This investment will enable us to further enhance our seamless and integrated service delivery model across the globe.

Our strategy includes acquisitions, bringing in new talent to offer expanded services, and advancing our technology infrastructure to ensure we continue to deliver exceptional value to our clients.”

About KNAV Advisory Inc.

KNAV was established in Mumbai in 1999, when Vaibhav Manek, Khozema Anajwalla, Nishta Sharma, and Atul Deshmukh joined forces.

The firm expanded its footprint across global locations serving Indian multinational companies expanding internationally.

KNAV is also a member of Allinial Global, an association of independent accounting and consulting firms.

Revenue: For FY23 KNAV bagged a net revenue of $17.3 million (reported by Accounting Today)

Locations: KNAV has a presence in seven countries: the US, Canada, the UK, the Netherlands, India, Singapore, and the Philippines.

Acquisitions: Earlier this year, KNAV acquired Natarajan & Swaminathan LLP, a Singapore-based accounting firm, enhancing its presence in the Singapore market.

Also read: Private Equity money is pouring into US CPA Firms. Surge in offshoring to India?

Services it provides

Audit

• Country-Level Audits: We perform audits in each country where we operate. This includes local and international audits.
• Special Purpose Audits: We conduct internal audits, management audits, and forensics audits.
• Financial Due Diligence: For investors, we perform quality of earnings reviews and analyze forecasts, projections, and financial statements to assess business viability and impact on deal valuation. This involves detailed financial diligence, ensuring businesses are on the right track, and helping investors understand the full picture

Tax

Our tax service line is laser-focused on three key areas:

• Help clients comply with regulations
• Optimize their tax savings
• Ensure robust tax documentation
• What sets us apart is our approach to tax compliance

Advisory

Now advisory is a wide term, but we are focused on 5 things:

• Client Accounting and Advisory: Virtual CFO services, including accounting, MIS, investor reporting, and data analytics to support business growth.
• Business Advisory: I lead this service line. We assist with business planning, strategy, and growth, helping clients scale their operations effectively and make informed decisions about growth – organic and inorganic, including collaborations and joint ventures.
• Valuation Services: Financial reporting valuations, business valuations, and regulatory compliance valuations for purposes like company filings and tax assessments.
• Corporate Finance: supports M&A transactions, capital raising, and divestitures, working on both buy-side and sell-side engagements.
• Risk Advisory: Focus on risk controls, SOX advisory, and ensuring businesses have the necessary safeguards in place.

Top trends to watch out for?

Vaibhav Manek, co-founder and Partner of KNAV says,

• “Audit is following with a solid 10-15% increase
• Taxation is also making strides with 15-20% growth.
• But the real star of the show is advisory – growth rates of 25-30% across various countries!

Who would have thought that the advisory and consulting industry, traditionally seen as stable but a tad unexciting, would attract such growing interest from external investors?

However, things are changing.

Several prominent firms in the industry, including EisnerAmper, Citrin Cooperman, Cherry Bekaert, Baker Tilly, and Grant Thornton, have already attracted investments from private equity firms.

This trend suggests that the perception of the advisory and consulting sector’s growth potential is shifting.