Nandan Nilekani, VCs invest Rs 140 crore in Power2SME

BENGALURU: Infosys co-founder Nandan Nilekani and three venture capital (VC) funds -Accel Partners, Kalaari Capital and Inventus Capital -have invested in a new round in Power2SME, a venture that aggre gates raw material demands of small and medium enterprises ( SMEs) and services these bulk requirements by negotiating with big suppliers. The company and investors declined to mention the amount invested, but it is believed to be around $20 million (Rs 140 crore).

The Gurgaon-based company , founded by former Oracle and Microsoft executive R Narayan in 2012, sources raw material at competitive prices across categories such as chemicals, additives, inks, paints, metals, and polymers, to sell it to SMEs directly . It had previously raised $15 million from the same VC investors in three rounds.

Speaking exclusively to TOI, Nilekani, who has previously invested in startups including Mubble, Team Indus, Fortigo and Juggernaut, said SMEs are the backbone of the Indian economy and can play a fundamental role in India's economic growth if they are supported properly .“SMEs need tech platforms and marketplaces. And Power2SME has a chance to scale and transform the sector,“ he said.

Power2SME has 30,000 SMEs on the platform and is currently focused on SME hubs of Gujarat, Maharashtra, West Bengal, Tamil Nadu and Delhi-NCR. It sources raw material from large vendors such as SAIL, Tata Steel, Essar Steel, GAIL, JSW , Haldia Petrochemicals, DuPont, Posco Steel and Apollo Pipes. “SMEs get 1.5% to 5% lower prices when they procure from Power2SME,“ said Narayan.