Power2sme, an online platform that acts a buying club for small and medium enterprises (SMEs), has received Rs 10 crore from venture firm Inventus Capital Partners. The funding will enable the company to further expand in the Indian market. As part of the deal, Parag Dhol, MD, Inventus Capital, will join the board of the company. Zanskar Advisors Pvt Ltd acted as the financial advisor for this transaction.
R Narayan, founder and CEO, Power2sme said, "The new funds will be used to expand the business and enhance the product offering. We have an aggressive outlook on growth, where we expect to end our first year with annual sales of Rs 50 crore, growing to Rs 1,000 crore over the next 3 years."
Gurgaon based Power2sme, a venture of BEBB India Pvt Ltd, acts like a buying club for SMEs and offers information and tools that enable SME's to reduce their procurement costs. The business model empowers SMEs by eliminating the need to engage with multitude of vendors, providing doorstep delivery of the goods through logistics providers, offering flexible payment options and accepting orders online 24x7, etc. The company was started with a seed capital of Rs 2 crore and claims to have SME clients with turnover ranging from Rs 10 to Rs 250 crore. The company works with suppliers including IOCL, Haldia Petrochemicals, GAIL and Sree Cements, amongst others.
"Power2sme has a huge potential to grow and position itself as an enabler for SMEs. The company has delivered remarkable results in a short span of time, making SME procurement more cost-effective in India," said Dhol.
Inventus Capital Partners is a US-India venture firm that has guided and financed over 100 entrepreneurs with operations in India and/or Silicon Valley. Inventus Fund-I has so far invested in 18 companies, with 2 successful exits already under its belt.
(Edited by Prem Udayabhanu)