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Gurgaon-based BEBB India, which runs Power2SME, an online buying platform for small and medium enterprises (SMEs), today disclosed that it has raised Rs 36 crore ($6 million) in Series B funding from their existing investors.
The funding round was led by Accel Partners with participation from Kalaari Capital and Inventus Capital.
The funding will help Power2SME to scale up their current business by extending its footprint to South India, increase their product portfolio, expand their sourcing channels to include direct imports for SMEs and make additional investment in technology, marketing.
R Narayan, Founder & CEO, Power2SME said, “Power2SME aims to help the SMEs improve their efficiency and provide a significant lever for growth and profitability." The company has a quarterly revenue run-rate of over Rs 12 crore ($2 million) and 13,000 registered SMEs users.
“Buying Club for SMEs’ raw material is a unique concept and we have not found another similar business model so far. There are several similar concepts globally but they focus on services, not physical goods. The business model of Power2SME sustains the ability to grow and expand with the ability to cater SMEs across multiple sectors,” said Mahendran Balachandran of Accel Partners.
As per Parag Dhol, MD of Inventus Capital, SMEs are operating on low margins and don’t have enough capital to spend on research and development. The extra money they generate after dealing with Power2SME can be utilized to drive sales and marketing initiatives for the SMEs, and more importantly can be invested in R&D.
