How Much Did Power2SME Raise? Funding & Key Investors

Power2SME has successfully raised significant funding over multiple rounds, attracting a diverse group of investors. The platform offers a range of services, including online lending and an industrial goods marketplace, aimed at empowering SMEs in India.

Keep reading to explore the intricacies of Power2SME's fundraising journey and the investors backing this innovative platform.

What Is Power2SME?

Power2SME, founded in 2012 by R. Narayan, operates as a B2B enterprise software company focused on small and medium businesses. Based in Mumbai, Maharashtra, India, the company has grown to employ between 101 and 250 people.

As India's first 'Buying Club' for SMEs, Power2SME aims to empower small and medium enterprises by reducing their purchase prices and increasing productivity. The company achieves this by sourcing raw materials at competitive prices and pooling the demand of SMEs to buy directly from manufacturers.

How Much Funding Has Power2SME Raised?

1. Amount Raised: $2M
   • Date: January 2012
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To kickstart operations and establish a foothold in the market.
2. Amount Raised: $6M
   • Date: July 2013
   • Lead Investors: Accel
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand the company's reach and enhance its service offerings.
3. Amount Raised: ₹420M (approximately $5.6M)
   • Date: September 2014
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To scale operations and improve procurement processes.
4. Amount Raised: $20M
   • Date: January 2016
   • Lead Investors: Nandan Nilekani
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To further expand the company's market presence and enhance technological capabilities.
5. Amount Raised: $10M
   • Date: September 2017
   • Lead Investors: International Finance Corporation
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support growth and expansion initiatives.
6. Amount Raised: $26M
   • Date: September 2017
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To accelerate growth and enhance service offerings.
7. Amount Raised: $6.2M
   • 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.

Total Amount Raised: $75.8M

Current Valuation: Not publicly disclosed

Key Investors

• InnoVen Capital
  • Details: InnoVen Capital is a venture debt firm that has provided $6.2 million in debt financing to Power2SME. Ashish Sharma is the CEO of InnoVen Capital India.
  • Investment Focus Areas: Venture debt financing, supporting working capital needs through partner financial institutions.
  • Notable Investments: Power2SME.
• International Finance Corporation (IFC)
  • Details: International Finance Corporation (IFC) is a member of the World Bank Group and focuses on private sector development in developing countries. IFC led a $46 million equity-based financing round for Power2SME.
  • Investment Focus Areas: Equity-based financing, supporting growth and development of SMEs.
  • Notable Investments: Power2SME.
• Nandan Nilekani
  • Details: Nandan Nilekani is an Indian entrepreneur and co-founder of Infosys. He participated in the $46 million equity-based financing round for Power2SME.
  • Investment Focus Areas: Equity-based financing, supporting innovative and growth-oriented companies.
  • Notable Investments: Power2SME.
• Accel
  • Details: Accel is a global venture capital firm that invests in early-stage and growth-stage companies. Accel participated in the $46 million equity-based financing round for Power2SME.
  • Investment Focus Areas: Equity-based financing, investing in high-growth potential startups and companies.
  • Notable Investments: Power2SME.
• Inventus Capital Partners
  • Details: Inventus Capital Partners is a venture capital firm that invests in early-stage technology companies. They participated in the $46 million equity-based financing round for Power2SME.
  • Investment Focus Areas: Technology, early-stage companies, growth-stage companies.
  • Notable Investments: Power2SME.

What's Next for Power2SME?

Power2SME stands at the cusp of significant growth, driven by the vast opportunities within India's MSME sector, which accounts for over 45% of the country's industrial output. With over 50,000 SMEs already on its platform, the company is well-positioned to scale up operations and expand its business offerings, particularly in sourcing raw materials at competitive prices and connecting lenders with SMEs through its finanSME platform.

Future fundraising opportunities appear promising, with potential for additional venture debt or equity-based financing. Continued support from existing investors like International Finance Corporation (IFC) and Accel Partners could further bolster Power2SME's expansion efforts. However, the company may face challenges such as competition from other B2B marketplaces and managing the risks associated with venture debt financing.

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