Last year, they raised $46 million in equity based financing led by International Finance Corporation (IFC). The round also saw participation from the likes of Inventus Capital Partners, Accel Partners, Kalaari Capital and Nandan Nilekani.
B2B marketplace and SME lending startup Power2SME has raised $6.2 million in venture debt financing from InnoVen Capital. The company plans to use the freshly secured funds towards scaling up the company and increasing its working capital, the company said in a statement. Established in 2012, the Power2SME holds over 5 offices across the country Mumbai, Chennai, Kolkata, Ahmedabad and Pune.
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Commenting on the funds raised, R.Narayan, Founder and CEO, Power2SME said, “Power2SME has had a long-standing association with InnoVen. Raising venture debt helps us conserve equity, minimise dilution and extend the runway. Our partnership with them brings to the table their extensive expertise and will help accelerate our transformation while better positioning us to execute on our strategy and mission to enhance our business offerings for the MSME sector.”
The company sources input raw materials for SME’s at competitive prices. These materials include Chemicals, Inks, Paints, Metals, Polymers, among others. This enables SMEs to focus on core business challenges and accelerating growth. The company’s portfolio addresses challenges in raw material procurement, finance, maintenance, repair and operational needs.
Commenting on the partnership, Ashish Sharma, CEO, InnoVen Capital India said, “We are pleased to partner with Power2SME, a leading B2B commerce marketplace in India backed by a strong group of investors. In addition to venture debt, we will also support their working capital needs through our partner financial institutions.”
The company claims to have over 50,000 SMEs on its platform and is currently operating in hubs like Gujarat, Maharashtra, West Bengal, Tamil Nadu and Delhi NCR. The company also connects lenders with SMEs through its platform finanSME. It helps these companies get working capital from banks, as well as non-traditional lenders.
Last year, they raised $46 million in equity based financing led by International Finance Corporation (IFC). The round also saw participation from Inventus Capital Partners, Accel Partners, Kalaari Capital and Nandan Nilekani.
The MSME sector accounts for over 45 percent of the country’s industrial output. While according to a report by Ministry of MSMEs, there are over 48 million MSMEs in the country employing over 100 million people.