Gurgaon-based BEBB India Pvt Ltd, which runs Power2SME, an online buying hub for SMEs, has raised Rs 42 crore ($6.87 million) from existing investors in its Series C round of funding from Accel Partners, Kalaari Capital (formerly Indo-US Venture Partners) and Inventus Capital, according to a VCCircle report.
The funds will be invested in further expanding the company’s business across the country. It will also enable Power2SME to reach out to more SMEs, enhance its product portfolio, diversify its sourcing channels and increase focus on imports, the report states further.
The new round takes the total funding raised by Power2SME to date to Rs 87 crore. The company also has offices in Mumbai, Pune, Ahmedabad, Chennai and Kolkata.
In October 2012, the company raised a Series A round worth Rs 10 crore from Inventus Capital Partners and Kalaari Capital. Post that, it raised $6 million (Rs 35,7 crore) in its Series B round of funding from existing investors Inventus and Kalaari, and from Accel in April last year.
“The decision of all three investors to reinvest in our business is a testimony of the fact that they have huge confidence in the success and scalability of our business model. The Series C funding will give a huge impetus to further strengthen our foothold in the Indian MSME industry,” said R Narayan, founder and CEO, Power2SME.
Power2SME offers information and tools that enable SMEs to reduce their procurement costs. It helps SMEs by eliminating the need to engage with multiple vendors, providing doorstep delivery of goods through logistics providers, offering flexible payment options and accepting orders online 24×7. The company is currently catering to industries such as construction, manufacturing, precision engineering and automotive OEMs.
For revenue generation, the company buys products at a certain price from the suppliers and sells those to the SMEs by charging a bit more.
“We have been following the growth story of Power2SME since the first time we decided to invest in it, and we believe that the company will be one of the big success stories in the times to come, owing to its innovative business model,” said Mahendran Balachandran, Accel Partners.
