The company plans to use the funds raised to further expand its operations in the country, improve its product offerings, add new sourcing channels and increase focus on imports.
Prior to this, Power2SME had raised $6 million from Accel Partners in April last year. It had also secured undisclosed amount of Series A investment from Kalaari Capital in December 2012 and Rs 10 crore investment from Inventus Capital Partners in September 2012.
Power2SME works by buying raw materials directly from the manufacturers in bulk and selling it to the SMEs, thereby eliminating the need for wholesalers and distributors. The company aggregates the orders received from various SMEs and collectively places them to get an optimal price from suppliers. It currently offers raw materials across various categories like chemical additives, commodity polymers, engineering polymers, inks, steel and paints to its clients.
SME’s can either select the product that they wish to buy and send a RFQ (Request For Quote) online or directly call Power2SME. Once the price is finalized, Power2SME sends a PO (Purchase Order) with the details of the product, price and all taxes applicable.
Founded in 2012, Power2SME currently delivers products from over 26 brands including IndianOil, Godrej, Dulux, Tesa, ACC, Mitsubishi Chemical, Metro, SAIL, GAIL and Haldia among others and claims to have served over 25,000 SMEs. It focuses on serving industries in the construction, precision engineering, manufacturing and automotive OEM fields.