Power2SME, the first ‘Buying Club’ for SMEs in India, today announced that it has raised USD 6 million in Series B funding from their existing investors. The funding round was led by Accel Partners with participation from Kalaari Capital and Inventus Capital. The funding will help Power2SME to scale up their current business by extending its footprint to South India, increase their product portfolio, expand their sourcing channels to include direct imports for their SME customers and makeAnnouncing the recent round of funding, Mr. R. Narayan, Founder & CEO, Power2SME said, “Power2SME’s aim to help unlock the potential of SMEs, whose progress is so critical to the India growth story. We believe that the power of the SME sector is largely untapped and holds great potential. Power2SME aims to help the SMEs to improve their efficiency and provide a significant lever for growth and profitability. With quarterly revenues run rate of more than $2 million and 13,000 registered SMEs users in less than 3 quarters of operations, Power2SME is well on its way to becoming a one stop destination for SMEs for all their business needs.”
“We believe that the limited size and the inefficiency in negotiation capabilities hamper the ability of the SMEs to get optimum procurement prices. Power2SME enables the SMEs to source the products at a competitive price ensuring significant savings. Buying Club for SMEs’ raw material is a unique concept and we have not found another similar business model so far. There are several similar concepts globally but they focus on services, not physical goods. The business model of Power2SME sustains the ability to grow and expand with the ability to cater SMEs across multiple sectors,” said Mahendran Balachandran of Accel Partners.
“The emergence of e-commerce in the B2B marketplace and the changing SME behaviour enables a very significant market opportunity. Power2SME is the first company to capitalise this, they are one of India’s fastest growing businesses in this space. The high satisfaction level of their SME customers is testimony to the excellent service that the company provides. We saw immense potential in their business model and lead by Narayan the leadership team is stellar to deliver a highly scalable company” said Vani Kola, MD, Kalaari Capital.
“SMEs are operating on low margins and don’t have enough capital to spend on R&D. The extra money they generate after dealing with Power2SME can be utilized to drive sales and marketing initiatives for the SMEs, and more importantly can be invested in R&D. Power2SME is truly a trend-setter in the B2B business and capable of becoming a game changer for SMEs in India,” said Parag Dhol, MD, Inventus Capital.additional investment in technology & marketing.
Source: Business Wire India