power2sme, the buying club for SMEs, announced today that it has received INR 10 crore commitments from Inventus Capital Partners. The company power2sme was started with a seed capital of INR 2 crore and the recent funding from Inventus Capital Partners will act as a booster for rapid expansion in the Indian market.
power2sme has a long term vision of empowering SMEs by helping reduce their purchase costs with the help of experienced and specialized professionals. As a buying club, power2sme aggregates the demand of hundreds of SMEs that enables the company to obtain the best possible pricing for their procurement needs. The business model empowers SMEs by eliminating the need to engage with multitude of vendors, doorstep delivery of the goods through reputed logistics providers, flexible payment options, placing orders online 24×7 and being the single destination for SME for managing purchase requirements across multiple locations.
Commenting on the occasion, R. Narayan, Founder & CEO, power2sme said, “We are strong believers in the potential of India’s SME market, and our objective is to expand our business with the ability to cater to SMEs across multiple sectors. The new funds will be used to expand the business and enhance the product offering. We have an aggressive outlook on growth, where we expect to end our first year with annual sales of INR 50 crore, growing to INR 1,000 crores over the next 3 years.”
Parag Dhol, Managing Director, Inventus Capital Partners said, “We fully support power2sme’s vision as a trusted business partner with a mandate to make SMEs more competitive in their business. Backed by a strong leadership team and intimate understanding of the Indian B2B market, power2sme has a huge potential to grow and position itself as an enabler for SMEs. The company has delivered remarkable results in a short span of time, making SME procurement more cost-effective in India.”
“Our focus is towards working with large, established and trusted suppliers, so our customers are assured of the quality of the product that they buy from us. We provide SMEs an online platform that offers information and tools, enabling them to both improve their efficiency and reduce their procurement costs. Hence, our business allows SMEs to compete on an equal footing with large enterprises,” said Narayan. Parag Dhol of Inventus Capital will join the power2sme’s board.
Commenting on the deal, Mukesh Jain, Founder & CEO, Zanskar Advisors Private Limited said, “Zanskar Advisors was the exclusive financial advisor to power2sme for this transaction. The deal is a significant step forward for power2sme in their vision of empowering SMEs and we are confident that their unique business model will lead to significant business growth and expansion.”
