Total amount raised
$77.1 Million
Latest funding date
04/01/2018
Location
Power2SME has successfully navigated 7 funding rounds, securing financial backing from notable investors such as InnoVen Capital and Ruchira Shukla. The platform operates as a group buying site, supplying essential materials like inks, steel, polymers, paints, and chemicals to small and medium enterprises in India.
Keep reading to explore the intricacies of Power2SME's fundraising journey and the investors backing this innovative platform.
What Is Power2SME?
Power2SME, based in Mumbai, Maharashtra, India, operates as a group buying site catering to small and medium enterprises (SMEs). The company focuses on providing essential materials such as inks, steel, polymers, paints, and chemicals.
Operating in the B2B, Enterprise Software, and SME sectors, Power2SME has an employee count ranging from 101 to 250. The company is recognized as India's first buying club for SMEs, aiming to reduce procurement costs and improve efficiency for its members.
How Much Funding Has Power2SME Raised?
- Debt Financing
- Amount Raised: USD 6,200,000
- Date: April 2018
- Lead Investors: InnoVen Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale up the company and increase working capital.
- Series E
- Amount Raised: USD 26,000,000
- Date: September 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand operations and enhance service offerings.
- Series E
- Amount Raised: USD 10,000,000
- Date: September 2017
- Lead Investors: International Finance Corporation
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support business growth and operational expansion.
- Series D
- Amount Raised: USD 20,000,000
- Date: January 2016
- Lead Investors: Nandan Nilekani
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance market presence and scale operations.
- Series C
- Amount Raised: INR 420,000,000
- Date: September 2014
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's footprint and improve service delivery.
- Series B
- Amount Raised: USD 6,000,000
- Date: July 2013
- Lead Investors: Accel
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance product offerings.
- Series A
- Amount Raised: USD 2,000,000
- Date: January 2012
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To launch the platform and establish initial operations.
Power2SME has raised a total of USD 70,200,000. The current valuation is Not publicly disclosed.
Key Investors
- InnoVen Capital
- Details: InnoVen Capital is a venture debt firm that provides financing solutions to high-growth companies in India and Southeast Asia. They have been a lead investor in multiple debt financing rounds for Power2SME.
- Investment Focus Areas: Technology, healthcare, consumer services.
- Notable Investments: Power2SME, Swiggy, Byju's.
- International Finance Corporation (IFC)
- Details: IFC is a member of the World Bank Group and focuses on private sector development in developing countries. They led a $46 million equity-based financing round for Power2SME.
- Investment Focus Areas: Infrastructure, manufacturing, agribusiness, financial services.
- Notable Investments: Power2SME, Flipkart, Bandhan Bank.
- Accel Partners
- Details: Accel Partners is a global venture capital firm that invests in seed, early, and growth-stage companies. They participated in the $46 million equity-based financing round for Power2SME.
- Investment Focus Areas: Technology, internet, software.
- Notable Investments: Facebook, Dropbox, Flipkart.
- Kalaari Capital
- Details: Kalaari Capital is an early-stage venture capital firm based in India. They participated in the $46 million equity-based financing round for Power2SME.
- Investment Focus Areas: Technology, consumer internet, healthcare.
- Notable Investments: Myntra, Dream11, CureFit.
- Nandan Nilekani
- Details: Nandan Nilekani is the co-founder of Infosys and a prominent Indian entrepreneur and bureaucrat. He participated in the $46 million equity-based financing round for Power2SME.
- Investment Focus Areas: Technology, innovation-driven enterprises.
- Notable Investments: Power2SME, Aadhaar initiative.
What's Next for Power2SME?
Power2SME stands at the cusp of significant growth opportunities, driven by its robust platform that serves over 50,000 SMEs. The company is poised to scale up operations and enhance its offerings, addressing critical needs in raw material procurement and financial solutions. With the MSME sector in India employing over 100 million people, the potential for expansion is vast.
Future fundraising efforts are likely to see continued support from existing investors, with potential for additional venture debt or equity-based financing. This financial backing will be crucial as Power2SME aims to expand its user base and enter new geographic markets within India. However, the company may face challenges such as competition from other B2B marketplaces and managing logistics for raw material procurement.
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