Power2SME, the first-of-its-kind of ‘Buying Club’ for small and medium enterprises (SMEs), has announced that it has raised an undisclosed amount of capital from Accel Partners, a leading Silicon Valley venture capital firm. The funding from Accel Partners will help Power2SME to strengthen its presence in India by expanding its footprint across newer cities and locations across the country and focusing on newer industries for the SME sector.
Power2SME strives to ‘empower’ the small and medium enterprises (SMEs) in India by increasing their profits, procuring best in quality products from a trusted supplier base and driving business efficiencies. Power2sme is currently growing at an exponential growth rate Quarter-on-Quarter. The company is exploring expansion into new sectors and product categories over the next few months while keeping a strong focus on construction, manufacturing, plastics and automotive sectors.
This innovative concept from India has captured the attention of Accel Partners, a global VC company with a strong history of identifying trendsetters like Facebook, Groupon, Dropbox, that have the potential to make existing business models obsolete in a matter of a few years.
Speaking on the occasion, R. Narayan, Founder & CEO, Power2sme said, “We are thankful to Accel Partners for their confidence in the success of our business model. This funding will facilitate us to empower more SMEs and enable them to gain a competitive edge in the marketplace. It will also enable us to expand our supplier base to a global pool of suppliers. The SME industry has the potential to emerge as one of the key growth drivers for the Indian economy in the near future. A study by Department of Science and Technology notes that the contribution of SMEs to the country’s GDP can be expected to increase from the present 8% to 12% by 2020. The SMEs in India are facing numerous challenges in terms of prices, variety and quality of the raw materials and we, backed by the funding from Accel Partners, hope to be their strategic partners to help them script their growth story”.
“We believe that the power of the SME sector is largely untapped and holds great potential from various perspectives. What Narayan is building to achieve through Power2SME, leveraging his considerable expertise in working with SMEs, could be a game changer. It will improve the efficiency of the SME’s Supply chain and provide a significant lever for their growth and profitability”, said Mr. Mahendran Balachandran, Partner, Accel Partners.
(Business Wire India)