Gurgaon-based Power2SME, a ‘Buying Club’ for SMEs in India, has raised an undisclosed amount of funding from Infosys co-founder Nandan Nilekani and existing venture capital (VC) funds – Accel Partners, Kalaari Capital and Inventus Capital.
The amount invested is undisclosed but it is estimated to be around $20 Mn (INR 140 Cr).
The company will use the raised capital to add more products including rubber, alloys, copper, aluminium, paper products, etc. to its platform.
Power2SME was founded in 2012 by R Narayan. It aggregates raw material and product demands from hundreds of small and medium businesses and places bulk orders with suppliers and manufacturers, thereby ensuring competitive prices.
Nandan Nilekani told ET that SMEs need tech platforms and marketplaces. And Power2SME has a chance to scale and transform the sector. He added, “When SMEs go digital via portals like Power2SME, their data flow becomes visible and boosts their credit worthiness, and this makes it easier for SMEs on the platform to borrow from banks.”
Power2SME has over 30,000 SMEs on its platform and currently operates in SME hubs of Gujarat, Maharashtra, West Bengal, Tamil Nadu and Delhi-NCR. Apart from Gurgaon, it has offices in Mumbai, Chennai, Kolkata, Ahmedabad and Pune.
Prior to this, Power2SME had raised $6 Mn (INR 42 Cr.) in Series C round led by its existing investors, Accel Partners, Kalaari Capital and Inventus Capital.
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