Accel Partners backs Power2SME

Source: PE Hub

Published on 17th September, 2014

Power2SME has received INR 42 crores in Series C funding. The investors were Accel Partners, Kalaari Capital and Inventus Capital. Headquartered in Gurgaon, India, Power2SME helps small to medium-sized businesses obtain the best pricing from vendors.

PRESS RELEASE

New Delhi, September 15, 2014 — Power2SME, the first ‘Buying Club’ for SMEs in India, today announced that it has raised INR 42 crores in Series C funding from its existing investors, namely 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.

The funding will enable Power2SME to reach out to increased number of SMEs, enhance its product portfolio, diversify its sourcing channels and increase focus on imports.
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.”

“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.

“The SME industry is the mainstay of the Indian economy. Power2SME is first of its kind of company that is committed to raw material procurement, strictly for the MSME industry. Over the past couple of years, they have been able to connect with over 25,000 SMEs and redefine raw material procurement for their organizations. We are confident that under Narayan’s leadership, Power2SME will be able to scale new heights to empower many more MSMEs in the times to come,” said Vani Kola, MD, Kalaari Capital.

“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. We believe that Power2SME will play an instrumental role in the new India growth story that will be facilitated by the MSME industry,” said Parag Dhol, MD, Inventus Capital.

Source: PE Hub

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