Power2SME is an online buying hub that helps SMEs reduce procurement costs by aggregating purchases, eliminating multiple vendors, and providing doorstep delivery, flexible payment options and 24/7 online ordering. Operated by Gurgaon-based BEBB India Pvt. Ltd and founded in January 2012, the company serves sectors including construction, manufacturing, precision engineering and automotive OEMs. The firm has raised both equity and venture debt to fund growth, including a Series E equity round that added $26 million from existing investors in September last year and a $10 million commitment from the IFC in May 2017. InnoVen Capital first provided venture debt to Power2SME in 2015 and has now committed another Rs 40 crore (about $6.16 million) to bolster its B2B position and working capital. Management says the debt will help conserve equity, minimize dilution and extend the company’s runway while accelerating its transformation and business offerings for the MSME sector. Power2SME operates a B2B buying‑club (Power2SME.com) that aggregates raw‑materials demand from SMEs and procures and sells at competitive prices, alongside FinanSME.com which connects empaneled lenders to provide working‑capital finance and SMEShops.com for MRO and consumable industrial goods. The platform addresses procurement, finance and MRO needs for SMEs and reports a registered base of 50,000 SMEs. It runs from 7 offices across 14 Indian states and has grown at roughly 2.6x year‑on‑year. Power2SME achieved profitability in November 2016. The company plans to use new capital to accelerate geographic expansion, product growth and innovation, increase sales and marketing resources, and evaluate strategic acquisitions. Power2SME operates a buying-club model that aggregates raw-material demands from small and medium enterprises to leverage collective purchasing power. Led by founder & CEO R. Narayan, the company works to increase adoption of its procurement services among SMEs. It has offices in Gurgaon, Ahmedabad, Chennai and Kolkata and a team of more than 150 employees. The company raised INR 42 crores in a Series C financing. Power2SME plans to use the funds to expand its business across India, enhance its product portfolio, diversify sourcing channels and increase focus on imports. The fundraising is positioned to support wider geographic reach and product and sourcing expansion. Power2SME is an online buying club for SMEs in India that aggregates purchasing to improve efficiency and profitability. The company serves registered SME customers—reporting 13,000 registered SMEs in less than three quarters of operations. It has a quarterly revenue run rate of more than $2 million. Management says it will use new funding to scale its footprint into South India, increase its product portfolio, expand sourcing channels to include direct imports, and make additional investments in technology and marketing. Founder and CEO R Narayan has described the SME sector as largely untapped and a significant lever for growth and profitability. The business model centers on leveraging collective buying power to lower costs and boost SME competitiveness. Power2sme operates as a buying club for small and medium enterprises, helping SMEs lower procurement costs and improve purchase quality. The company raised a Rs 10 crore Series A in which Kalaari Capital and Inventus Capital Partners each committed Rs 5 crore. Kalaari Capital, a $150 million venture capital fund (formerly IndoUS Venture Partners), said the Rs 5 crore infusion will be used to expand presence across newer geographies, hire talent, and increase brand visibility. The funding is intended to support the company’s geographic expansion, recruitment, and brand-building efforts. Power2sme was incorporated in January 2012.

Total raised

$57M

Funding rounds

5

Latest round

Debt Financing

Latest activity

Apr 2018