Fintech company Intuit’s QuickBook to exit the Indian market

QuickBook

QuickBooks, which is a financial and business management programme for small firms from the parent company Intuit, is about to exit the Indian market and won’t be available in India after January 31, 2023.

“After careful consideration, the decision was made that we can no longer continue to deliver and support QuickBooks products that serve the needs of small businesses and accounting professionals across India,” said Intuit.

The company has offered no further explanation for the decision, nor the considerations that informed it.

The departure of QuickBooks occurs at a time when many SMEs are embracing digitisation, creating an opportunity for Indian businesses like Zoho and Tally.

It also draws attention to the particular difficulties Indian SMEs present for service providers.

Additionally, QuickBooks Online, QuickBooks Online Accountant, QuickBooks mobile app, and QuickBooks Time no longer accept new subscriptions in India.

Cloud accounting, invoicing, inventory management, and cash flow management are all part of QuickBooks’ line of products. Through QuickBooks Online Accountant, it also provides an online practice management solution for chartered accountants.

QuickBooks also released a GST-ready version of its online accounting programme in 2017 for a seamless user experience.

Although, the company has informed that the 1,300 Indian employees of Intuit won’t be impacted by the suspension of QuickBooks, according to reports.

Due to the company’s decision to leave the Indian market, Intuit is no longer accepting new QuickBooks clients as of right now. However, existing customers will still receive free service for the company’s remaining seven months of operation.

Prior to July 31, 2022, the business will convert all current paid customers into free users, allowing them to continue using QuickBooks until January 31, 2023, charge-free. Customers with annual subscriptions will be refunded for the time that they didn’t utilise it.

“We understand that the withdrawal of the product may create challenges for your business. We are committed to making the transition out of the product as straightforward as possible,” Intuit said.

According to a report, Indian enterprise tech companies raised more than $3.2 Bn in financing across 229 deals in 2021, compared to $1.6 Bn over 130 deals in 2020.

According to a Bain and Company report, Indian SaaS firms are also on track to generate $30 Bn in revenue by 2025, accounting for 8% to 9% of the worldwide SaaS industry.

India does have homegrown accounting software providers, including Zoho, Tally, Marg, and Busy. Aatmanirbhar Bharat, a national initiative to promote self-sufficiency, promotes purchasing from local vendors.

With that campaign and the strong patriotic emphasis India’s government places on it, Intuit might have faced struggles.

Insignificant steps have already been taken by Zoho to fill the void left by QuickBooks’ departure. In a statement released on Thursday, Zoho stated it was willing to assist QuickBooks India customers. The unicorn, which has its headquarters in Chennai, also made clear that it is totally committed to enhancing its presence in India.

“At Zoho, we understand how challenging it can be for businesses to find a replacement for their existing financial system. Zoho Books will be glad to serve the needs of those businesses looking for an alternative solution, and help them transition smoothly,” said Prashant Ganti, head of products tax, accounting and payroll, Zoho.

In contrast, despite competition from foreign companies like QuickBooks, business management software vendor Tally Solutions has dominated the accounting software market. Tally developed a solid network, contacted accountants, and concentrated on training its customers in order to increase its reach. It would also aim for a bigger piece of the pie following QuickBooks’ departure from the Indian market.

Interestingly, while Intuit won’t offer its wares in India, the company will continue to operate there to develop its products for use in other nations.

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