Power2SME raises Rs 230 cr in funding from IFC

Power2SME, the digital marketplace for SMEs, has raised Rs 230 crore in fresh funding from International Finance Capital (IFC) and existing investors as it looks to grow its business in India.

The company helps small industries buy raw materials, get access to working capital loans and to buy industrial consumables. The latest round saw the participation of existing investors Inventus Capital Partners, Accel, Kalaari Capital and Nandan Nilekani.

"Our work has been driven by our vision to make SMEs bankable. Our deep networks and relationships with the banking sector and financial institutions helps us to make our SMEs succeed like never before," said R Narayan, Founder and CEO at Power2SME, in a statement.

"This capital gives us additional resources to expand quickly and strategically into new markets, innovate rapidly, and deliver on our vision," he added.

Power2SME says it has seven offices and operates in fourteen states in the country today. With a registered base of 50,000 SMEs, the company claims it is the largest digital ecosystem for SMEs in India. The fresh capital will be ploughed into the geographical expansion, product development and marketing.

With a base of 48.8 million medium and small enterprises in India, the potential for services solving issues around sourcing and finance are huge. There is an estimated $380 billion gap in long-term capital availability for such small industries, which make up 40 per cent of India's exports.

"Power2SME clearly leads the market in the development and delivery of an Impactful B2B digital ecosystem," said Parag Dhol, MD at Inventus Capital Partners. "Our investment will help Power2SME capitalize on the growing demand for their solutions, and accelerate the company's pace of product innovation."