Gurugram-based Power2SME, a B2B online buying club for small and medium enterprises, which helps them to buy raw materials at bulk prices, has raised $36 million funding in a Series E round from its existing investors Inventus Capital, Accel, Kalaari and IFC along with Nandan Nilekani.
The company’s current Series E round also includes an investment of $10 million from the International Finance Corporation, this month.
The proceeds will be deployed towards expansion, new products, and innovation, besides investing in marketing related activities and acquisition.
“Power2SME’s goal is to empower SMEs to reach efficiencies of scale, thus, driving profitability for them. Our work has been driven by our vision to make SMEs bankable. Our deep networks and relationships with the banking sector and financial institutions help us to make our SMEs succeed like never before, said Power2SME founder R Narayan.
Own and operated by BEBB India Pvt Ltd, Power2SME works with large, established suppliers and vendors such as SAIL, TATA Steel, ESSAR Steel, Allied Strips, JSW, Rathi Steel, Victor Exim, Balaji Enterprise, POSCO Steel, Apollo Pipes, JSL, etc.
It also works with nearly 50,000 small and medium industries sourcing raw materials such as steel, polymers and chemicals, and provides a buying club for SMEs ordering from a common location to procure bulk raw materials directly from these renowned companies.
In January 2016, Power2SME had raised an undisclosed amount of funding led by Infosys co-founder Nandan Nilekani with participation from existing investors.
Earlier, the firm had raised Rs 42 crore from early-stage venture capital fund Accel Partners, Kalaari Capital and Inventus Capital in 2014, and secured its Series B round of funding of $6 million in April 2013 from existing investors.
According to an industry estimate, about 36 million enterprises in the MSME (micro, small and medium enterprises) sector contribute to over 45% of India’s manufacturing output. This offers a unique opportunity for NBFC to finance micro, small and medium-sized enterprises.