Power2SME plans to raise up to Rs 100 crore in the next two quarters to fund its expansion plans. It is a leading buying club for SMEs in the country.
The Gurgaon-based firm
buys raw materials directly from manufacturers to sell to the small
businesses. SMEs get raw materials at low prices as it cuts out the
middle link of distributors and wholesalers. It counts Accel
Partners, Kalaari Capital and Inventus Capital among its investors.
As quoted by Business
Standard, Power2SME CEO, R Narayan said, "We are currently
present in eight states and in the next two years, we want to expand
to 12-16 states. In series A and B, we have raised about Rs 50 crore
in total. In the next two quarters, we are looking at raising between
Rs 80-100 crore to fund our growth plans".
There could be a new lead
investor for the new round of funding. The two-year old firm is
looking at closing the year with more than Rs 150 crore in revenues
"Last year, we had
revenues of 65 crore and we already have 18,000 SMEs on board.
Power2SME has become an important destination for SMEs for their
business needs," he added.
Apart from this, to
strengthen its operating platform, Power2SME is also making
significant investment in technology.
Narayan further stated
that the power of the SME sector is largely untapped and it has a
huge growth potential. SMEs account for 39%of the USD 129 billion
Indian steel, polymer and metal industry, the area where Power2SME
operates, the potential is tremendous.
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