KaarTech has secured USD 11 million (around Rs 100 crore) in a new funding round led by Playbook Partners, as the enterprise technology firm plans to accelerate growth and expand its international presence, according to media reports.
Playbook Partners managing partner Vikas Choudhury said that the company is helping large enterprise clients migrate their systems to the cloud from on-premises infrastructure. It is also helping these companies become AI-ready.
Founded in 2006, the Chennai-based company delivers SAP-led digital transformation services to enterprises. The firm provides a wide range of solutions, including SAP implementation and support, cloud and data services, artificial intelligence-driven automation, analytics, and managed services. Consequently, businesses rely on the company to modernize and streamline their operational systems.
According to regulatory filings, the company approved the issuance of 4,00,520 Series B compulsorily convertible preference shares (CCPS) at an issue price of Rs 2,496.75 per share. Through this issuance, the company raised the capital from Playbook Partners to strengthen its financial position and support expansion plans.
The company plans to allocate the newly raised capital toward capital expenditure, business expansion, and general working capital requirements. Furthermore, the funding will help the firm enhance its enterprise technology capabilities and scale its global operations.
The investment has valued KaarTech at nearly Rs 2,100 crore (approximately USD 231 million) on a post-money basis. Earlier in 2023, the company had already secured USD 30 million from A91 Partners to support its strategic expansion initiatives.
KaarTech has also demonstrated strong financial performance. The company increased its revenue by about 56 percent year-on-year, reaching Rs 718 crore in FY25 compared to Rs 458 crore in the previous fiscal year. Moreover, the firm returned to profitability and reported a net profit of Rs 7.74 crore after posting a loss in FY24.
Entrepreneurs Maran Nagarajan, Ratnakumar N., Selvakumaran Manickam, and Gaurdian George founded the company to help enterprises manage and optimize their business operations through digital transformation technologies.
The latest funding round marks another milestone for KaarTech as it strengthens its position in the enterprise technology and SAP transformation ecosystem. Strong revenue growth, renewed profitability, and support from strategic investors position the company to accelerate innovation, expand internationally, and help enterprises advance their digital transformation journeys.
