Online buying hub Power2sme raises funding from Kalaari Capital
Power2sme , an online buying hub for small and medium enterprises (SMEs), has received an undisclosed funding from Kalaari Capital (formerly Indo-US Venture Partners).
The venture, run by Gurgaon-based BEBB India Pvt Ltd, already raised Series A funding of Rs 10 crore from Inventus Capital Partners in October this year and Kalaari's investment is an extension of that round.
As part of the deal, Kalaari Capital MD Vani Kola will join the board of the startup.
Power2sme, which helps obtain the best pricing for SMEs procurement needs and ensures doorstep delivery, will use the money to expand its operations across the country (Mumbai, Pune, Ahmedabad and Chandigarh), hire more people and increase its brand visibility.
"We plan to use the money to further scale our operations, focus on newer products and increase our reach in the Indian market. We are strong believers in the potential of India's SME market and the funding will be used to build a strong foundation to cater to the SMEs across multiple sectors and geographies," said R. Narayan, founder and CEO.
The company was started in January this year with a seed capital of Rs 2 crore and claims to have SME clients who have turnover ranging from Rs 10-250 crore. It pools the demands of hundreds of SMEs for multiple products and procures the same from a large pool of quality suppliers at a discount, thus generating the revenue stream. It has also partnered with multiple logistics companies to supply and deliver those products.
The company works with suppliers like IOCL, Haldia Petrochemicals, GAIL and Sree Cements, among others. It is currently catering to industries such as construction, manufacturing, precision engineering and automotive OEMs, and plans to expand its offerings to various other sectors in the coming months.
"We see immense potential in their (Power2sme) business model and are highly confident of the capability of the team to execute it well," said Kalaari's Vani Kola.
Bangalore-based Kalaari is a $160 million venture capital fund, focusing on early-stage, technology-oriented companies in India. It was set up by the founders of Indo US Venture Partners in September this year and has recently raised an investment fund worth $150 million for the Indian market. Its portfolio companies include Simplilearn.com, Mettle, Zivame and Hushbabies, among others.
(Edited by Sanghamitra Mandal)