Construction management startup Powerplay has raised $7 million in a new financing round led by Accel India and participated by other existing investors. This would be the second funding round for the firm in the past 13 months.
The board at powerplay passed a special resolution to issue 2,360 Series A1 CCPS at an issue price of Rs 2,40,860 per share to raise Rs 56.84 crore or $7 million, the company’s regulatory filings with the Registrar of Companies (RoC) show.
Accel India spearheaded the new round with Rs 39.8 crore while IQ Alpha and Surge Ventures pumped in Rs 6.21 crore and Rs 9.94 crore respectively. Early angels in the company: Rohit Kumar Bansal and Kunal Bhal also participated with Rs 43 lakhs each.
After this round, Accel became the largest stakeholder with 19% share capital while IQ Alpha and Surge hold 16.84% and 13% stake respectively. Co-founders Iesh Dixit and Shubham Goyal collectively diluted to 41.1%.
As per Fintrackr’s estimates, Powerplay has been valued at around $75 million or Rs 600 crore (post allotment). This round appears to be an ongoing one and the company is likely to raise more capital and its valuation will change accordingly.
In July 2021, the company had raised $5.2 million in its Series A led by Accel Partners and Sequoia Capital India’s Surge. The Bengaluru-based startup was a part of the fifth cohort of Surge’s accelerator program.
Founded in 2019 by Iesh Dixit and Shubham Goyal, Powerplay simplifies site-to-office communication to manage construction and architectural projects. It enables construction companies to track progress, attendance and material management, invoices, issue tracking, and budget management.
According to Sensor Tower, its app has 500K downloads and Powerplay claims to have helped 500 construction companies in the past three years.
Powerplay is yet to file its financial statements for FY22, it remained a pre-revenue stage company until FY21 as its operating revenue stood at Rs 3.5 lakh during the fiscal year ending March 2021. Meanwhile, its losses widened to Rs 1.85 crore during the same period.
Accel, the early backers of Flipkart, Freshworks, Swiggy, Spinny, Vedantu, Zetwerk, Infra.Market and Moglix, announced its seventh India fund worth $650 million in March to back early as well as growth stage startups.