Update: Power2Sme ended its first year with a gross merchandise value of Rs 20 cr and is planning to close the current year at about Rs 120 cr, R Narayan, the CEO & Founder of the company told NextBigWhat. “We had planned to break even in 2015, but we decided to do that by the first quarter of 2014,” Narayan said. The starup, which is currently in NCR and Maharashtra, has rolled out operations in Gujarat and is likely to launch in Andhra Pradesh and Tamil Nadu soon.
Power2Sme has also tied up with non banking financial corporations to advance working capital to SMEs.
Earlier today: Gurgaon based buying club for small and medium enterprises Power2Sme has raised $6 mn from existing investors including Accel Partners, Kalaari Capital and Inventus Capital.
There was speculation that the company had raised $6 mn in April. However, at the time, only a strategic investment was made by Accel Partners and the deal has been closed now, the company said.
The startup provides a platform for SME’s to obtain better deals on procurement. It also does door-step delivery to SMEs, online tracking of orders and flexible payment options.
The company raised $2 mn from Inventus Capital & Kalaari Capital in October last year. In April last year,
the company was reportedly valued at Rs 200 cr when Accel Partners made a Rs 6 cr investment in the company.
The company has set an ambitious target of reaching a $1 bn gross merchandise value by 2015. That’s pretty much what Flipkart wants to achieve.