Bengaluru: Power2SME (BEBB India Pvt. Ltd), a start-up that makes procurement easier for small and medium enterprises (SMEs), announced on Monday that Infosys Ltd co-founder and former Unique Identification Authority of India head Nandan Nilekani has become a strategic investor in the firm.
The company didn’t disclose financial details of the transaction. Power2SME, founded in 2012, has so far raised around $15 million from venture capital firms Accel Partners, Inventus Capital Partners and Kalaari Capital.
The company said it aims to break even in the coming financial year and that it will use the fresh funds to develop its product, increase vendor relationships and develop a mobile app.
Power2SME sources raw materials such as chemicals, additives, inks, paints, metals and polymer commodities for its clients, enabling access to quality material and shortening the procurement process for SMEs.
“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 am excited to watch the growth journey of this company as it continues to contribute in strengthening the SME social fabric of the nation,” Nilekani said in a statement.
“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. 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,” said R. Narayan, founder and chief executive officer, Power2SME.