Power2SME attracts investment worth $40 mn from IFC and other investors

New Delhi, May 3 (KNN) The first 'Buying Club' for SMEs in India, Power2SME, has attracted an equity investment of around $10 million from International Finance Corporation (IFC), the private investment node of the World Bank.

The Gurgaon based company Power2SME was started as BEBB in January 2012 with an initial funding of Rs2 Crore. The company caters to the aggregate raw material demands of Small and Medium Sized Enterprises (SMEs). Power2SMe has offices in Mumbai, Chennai, Kolkata, Ahmedabad and Pune.

Besides the investment commitment from IFC, the company has investments from leading investors including Accel partners, Inventus Capital Partners and Kalaari Capital.

Talking to press, Power2SME CEO R Narayan said that the company’s run rate for the previous fiscal years was around 1,200 crore. He further predicted this to be up to 2,500 in the present year.

The company also provides access to finance by helping its users to access working capital financing through its network of banks and Non-Banking Financial Companies (NBFCs)

The IFC keen on investing in the portal said that this will help Power2SME engage with its NBFC portfolio resulting in smooth flow of finance to the sector. Commenting upon the well connectedness of the portal the IFC said that considering the portals widespread network, the number of transacting SMEs is likely to increase by ten times in the next five years. (KNN/ DA)