Power2SME raises INR 42 crores in series C funding
Power2SME is a ‘Buying Club’ for small and medium enterprises that started in early 2012 (read their complete story). Today, the company has announced that it has raised INR 42 crores in Series C funding from its existing investors- Accel Partners, Kalaari Capital and Inventus Capital. The funding will help Power2SME to further expand its business across the country, thereby enabling the company to strengthen its foothold in the SME market. Announcing the recent round of funding, Mr. R. Narayan, Founder & CEO, Power2SME said,
We are excited about the Series C funding. The decision of all the 3 investors to reinvest in our business is a testimony of the fact that they have huge confidence in the success and scalability of our business model. The Series C funding will give a huge impetus to further strengthen our foothold in the Indian MSME industry. Power2SME is committed to empower the SMEs as we believe that SMEs can rescript the India growth story.
Power2SME has quickly grown from a single office to 6 offices with a team of 150 + employees pan India. Power2SME works closely with SMEs to pool their raw material demands thus enabling them to benefit from the power of collective buying. This business model of the “Buying Club” allows SMEs to obtain the most optimal pricing for their procurement needs from a large pool of quality, recognized suppliers. The company is headquartered in Gurgaon and has offices in Mumbai, Pune,
“We believe that Power2SME’s business model is unique and scalable. We have been following the growth story of Power2SME since the first time we decided to invest in it, and we believe that this will be one of the big success stories in the times to come, owing to its innovative business model. The one-of-its kind of ‘Buying Club’ has been empowering increasing number MSMEs across sectors and supporting them to enhance profitability”, said Mahendran Balachandran, Accel Partners. Over the past couple of years, they have been able to connect with over 25,000 SMEs
“SMEs are operating on low margins and raw materials procurement, which is close to 65-70% of the cost of goods sold, continues to be one of key concern areas for SMEs in India. Power2SME’s innovative business model has enabled thousands of MSMEs to procure raw materials at competitive prices, over the past couple of years. The exponentially increasing customer base showcases the fact that SMEs are finding value in associating with Power2SME,” said Parag Dhol, MD, Inventus Capital.
Related read: Powering the SMEs the Narayan Way with Power2SME