Intuit Quickbooks, an online accounting software for small businesses, will stop selling in India, the US-listed firm informed clients on Thursday, after over 15 years of trying to crack the market. The firm, however, said this will not impact Intuit’s presence in India, where it has over 1,300 employees.
In the near term, this could turn into an advantage for local rivals such as Zoho, Tally and Indiamart. Industry officials estimate that around 30,000 businesses use the Quickbooks product in India.
"We are getting in touch to let you know that from 31 January 2023, Intuit's QuickBooks Online products will no longer be available in India. Accordingly, we are no longer accepting new subscriptions in India at this time. This applies to all subscriptions for QuickBooks Online, QuickBooks Online Accountant, the QuickBooks mobile app, and QuickBooks Time, " the mail said. Moneycontrol has reviewed a copy of the mail.
"This decision has not been made lightly and we recognise the impact it has on our customers. We're no longer able to deliver and support QuickBooks products that serve the needs of small businesses and accounting professionals across India," it further said.
As part of the transition, all existing paid subscriptions will be switched to free prior to 31 July 2022, to enable companies to continue using QuickBooks until 31 January 2023 with no charges applied. Customers who have paid an annual subscription will receive a refund for the unused portion of their subscription.
The company has also advised companies to download their data and transition out of the product at this time.
Intuit, which competes with the likes of Zoho and Tally, has been offering its accounting product QuickBooks in India from 2012 and had rolled out a GST-compliant version in 2017. It also offers an online practice management solution for chartered accountants called QuickBooks Online Accountant.
Intuit currently has over 1,300 employees in India.Intuit India, the company's first venture in Asia Pacific, commenced operations in 2005. Intuit agreed to purchase email marketing company Mailchimp in a $12 billion cash-and-stock deal in September last year.
In a statement to Moneycontrol, Intuit said, "The decision to retire QuickBooks products in India does not impact Intuit’s ongoing presence and commitment to investing in top tech talent in the country. The 1300+ strong team in India continues to deliver bold innovation that impacts more than 100 million Intuit customers around the world. Intuit is continuing to invest resources and efforts to bring scalable solutions to customers - and the teams here in India play a critical role."
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