Chennai-Headquartered SaaS Firm KaarTech Raises $30 Mn From A91 Partners

Chennai-based SaaS company KaarTech has raised a funding of $30 Mn from Mumbai-based investment firm A91 Partners to strengthen its presence in its overseas markets.

KaarTech will use the fresh capital to boost organic and inorganic growth across existing markets in the Middle East, the European Union and North America, the company said in a statement. 

After this investment, Gautam Mago and Kaushik Anand from A91 Partners will join the board of KaarTech. 

“The partnership with A91 will catapult KaarTech into an unprecedented era of expansion, propelling us towards our aspiration of going public, despite our humble bootstrapped origins. This association will bolster our ability to expand geographically and augment our services portfolio in-organically,” Maran Nagarajan, CEO of KaarTech, said.

Founded in 2006, KaarTech is a digital transformation and consulting company. It claims to have specialisation in providing IP and digital services in the SAP ecosystem, with expertise in discrete manufacturing, professional services automation, process manufacturing and consumer packaged goods. 

KaarTech claims to have executed over 2,500 projects so far, including for marquee names like Aramco.  With a team of over 2,000 employees, KaarTech claims to have doubled its revenue in the last 24 months.

The IT consulting and implementation segment in India is estimated to be worth $1.08 Bn in 2023. With a 10.70% compound annual growth rate during 2023-2028, the market is expected to reach a size of $1.80 Bn by 2028.

The fund raise comes at a time when global economic slowdown and adverse macroeconomic factors have affected SaaS firms as well. Last month, Freshworks undertook its third round of layoffs within six months.

The ongoing funding winter has hit startups across the board, including in the SaaS sector. According to Inc42’s ‘Indian Tech Startup Funding Report H1 2023’, total funding declined 78.5% year-on-year (YoY) to $580.18 Mn from $2.7 Bn in June 2022. The number of deals also fell 25% to 94 during the month from 125 deals in June 2022.

Indian enterprise tech startups raised $683.9 Mn in H1 2023, while overall, Indian startups raised  $5.4 Bn in the first half of 2023 (H1 2023) across 462 funding deals.