Power2SME a raw material aggregator startup for SME has raised $20M in Series-D funding led by Infosys co-founder Nandan Nilekeni.
How does Power2SME use the fresh funds?
Power2SME will use the funds to broaden its product portfolio, strengthen vendor relationships and engage with SMEs through out India. The company will also strengthen its technology platform and mobile app offering.
Business Model - Power2SME
Power2SME works by buying raw materials directly from the manufacturers in bulk and selling it to the SMEs. The company aggregates the orders received from various SMEs and collectively places them to get an optimal price from suppliers.
What big problem did Power2SME identified in this space?
- 70% of monthly recurring cost for a manufacturing SME is incurred in purchasing raw material.
- Unstructured market.
- No access to right quality raw material at right price.
Eliminating the need for wholesalers and distributors.
Raw materials categories they deal
Chemical additives, commodity polymers, engineering polymers, inks, steel and paints.
|Jan 2016||Series D||Rs 140 crore||Nandan Nilekani|
|Sep 2015||Series C||Rs. 42 crore||Inventus Capital, Kalaari Capital and Accel Partners.|
|Jul 2013||Series B||$6M||Inventus Capital, Kalaari Capital and Accel Partners.|
|Jan 2012||Series A||$2M||Inventus Capital, Kalaari Capital and Accel Partners.|
Catered services to 30,000 SME's since three years