Power2SME, a Gurgaon-based startup that aggregates raw material demands of small and medium enterprises, has raised around $20 million from Nandan Nilekani, founder of Infosys, along with the participation of three VC firms – Accel Partners, Kalaari Capital, and Inventus Capital.
The company’s focus is to break even in the coming financial year. Thus, Power2SME will broaden its product portfolio, strengthen and deepen vendor relationships, and continue to engage on the ground with SMEs Pan India through its SME Transformation Camps. It will also strengthen its technology platform and mobile app offering.
The company was founded by R Narayan, a former executive of Oracle and Microsoft. Power2SME sources raw materials for SMEs in varied categories such as Chemicals, Inks, Paints, Metals, Polymers, and more.
By opting for this service, the SMEs can continue to focus on their core business of accelerating growth, both in terms of revenue and development. Currently, the company has around 6 offices, which are spread across cities like Mumbai, Chennai, Kolkata, Ahmedabad, Jaipur and Pune.
In a released statement, the company claims that over the last 3 years, it has worked with around 30,000 SMEs and has used technology to translate their need for competitive raw material pricing as well as financial assistance through the large number of Financial Institutions Power2SME partners with.
The firm is currently focused on SME hubs of Gujarat, Maharashtra, West Bengal, Tamil Nadu and Delhi-NCR. It has revealed that it sources raw material from vendors like SAIL, Tata Steel, Essar Steel, GAIL, JSW , Haldia Petrochemicals, DuPont, Posco Steel and Apollo Pipes.
Mr. Nandan Nilekani commented that,
Indian SMEs act as an engine for growth of our nation and they are critical to making India a manufacturing hub. Power2SME has a unique business model that focuses on making SMEs bankable and profitable and I am excited to watch the growth journey of this company as it continues to contribute in strengthening the SME social fabric of the nation.
Mr. R. Narayan, Founder & CEO, Power2SME, said that,
To have Mr. Nilekani as our strategic investor and receive his support for Power2SME’s vision to make Indian SMEs bankable is exciting for us. It is critical to foster the sector to meet the national imperatives of financial inclusion and to generate employment in India. Power2SME is working towards creating an ecosystem that addresses SMEs’ challenges in raw material procurement and financial assistance, which are major roadblocks for growth of SMEs. We have a very aggressive plan for developing our business and boosting revenues in the future.