Info-tech

Power2SME raises $36 mn funding in Series E round

Priyanka Pani Mumbai | Updated on January 10, 2018

Power2SME, a startup that caters to the finance, material procurement and other needs of small-scale enterprises, has raised an additional $36 million funding in a Series E round from its existing investors Inventus Capital, Accel, Kalaari and IFC along with Nandan Nilekani.

The funds will be used for expansion, new products and innovation, besides investing in marketing related activities and acquisition.

The company, which was founded in 2012, has earlier raised about $44.8 million in five rounds. It claims to have pioneered the category of the B2B Buying Club for SMEs and has created a strong digital ecosystem platform for SMEs. It offers a digital ecosystem for SMEs addressing issues related to material procurement, financing and buying. It has about 50,000 SMEs registered on its platform and operates in about 14 states.

Power2SME’s fast-paced growth has been driven by dramatic year- on-year growth of 2.6 times. The firm achieved profitability in November 2016. Implementation of GST will further enable expansion of Power2SME in non-operational markets with ease, thereby, increasing the number of SMEs it can reach out to. This would help raise the number of transacting SMEs on its platforms by up to 10 times in the next five years, the company said in a statement.

"Power2SME’s goal is to empower SMEs to reach efficiencies of scale, thus, driving profitability for them. Our work has been driven by our vision to make SMEs bankable. Our deep networks and relationships with the banking sector and financial institutions helps us to make our SMEs succeed like never before, said its founder R Narayan.

“As demonstrated by their remarkable growth and widespread adoption, Power2SME clearly leads the market in the development and delivery of an impactful B2B digital ecosystem,” says Parag Dhol, MD, Inventus Capital Partners.

Published on September 19, 2017

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