Indian startup Power2SME, the ‘buying club’ for SMEs based in Gurgaon has raised an undisclosed amount of funding from Nandan Nilekani (Infosys CoFounder), Accel, Kalaari & Inventus Capital.
Power2SME, founded in 2012 by R Narayan is pretty much a wholesale store. Working as an aggregator, it takes orders from SMEs, aggregates them and places huge orders with suppliers and manufacturers. This trick lets them provide the material to SMEs at competitive prices.
The raised funds will be used to increase the product portfolio which might include rubber, alloys, metallic items and paper products in the time to come. Currently, the company provides chemical additives, steel, paints and commodity polymers.
While talking to media, Nandan Nilekani told that SMEs need proper technology platforms and marketplaces. Investing in Power2SME was one such move to help them scale and transform into a bigger and better platform. When SMEs go digital, it becomes a better way to reach out to customers, increase efficiency and get better ROI.
Currently, Power2SME has over 30,000 SMEs registered with them and they are operating in Gujarat, Maharashtra, West bengal, Tamil Nadu, Delhi NCR with offices in Gurgaon, Mumbai, Pune, Ahmedabad, Chennai and Kolkata.
The raised fund, which is undisclosed, however, the rumors predict the amount to be $20 Million (INR 140 Crores). Before this, Power2SME had raised $6 Million from Access, Kalaari and Inventus capital.
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