Highlights
KaarTech Achieves Significant Growth in Digital Transformation Consulting
KaarTech, a prominent digital transformation consulting firm, has secured approximately $11 million (Rs 100 crore) from Playbook Partners, known for their investment in Renee Cosmetics. This funding round reflects KaarTech’s impressive profitability and a remarkable 56% year-on-year increase in FY25, with revenues exceeding Rs 700 crore.
Funding Details and Future Plans
KaarTech’s official documentation submitted to the Registrar of Companies (RoC) indicates that its board has authorised the issuance of 4,00,520 Series B CCPS at a price of Rs 2,496.75 each, facilitating the raise of Rs 100 crore from Playbook Partners. The funds are earmarked for capital expenditures, business growth, and overall working capital needs.
Valuation Insights and Previous Investments
Startup Superb estimates that KaarTech’s valuation stands at around Rs 2,100 crore, translating to approximately $231 million post-money. Previously, in July 2023, KaarTech had successfully raised $30 million from A91 Partners.
About KaarTech
Established in 2006 by Maran Nagarajan, Ratnakumar N, Selvakumaran M, and Guardian George, KaarTech is a leading technology and consulting firm specialising in SAP-led digital transformation. The company offers a range of services, including SAP implementation and support, cloud and data solutions, AI and automation, analytics, and managed services, aimed at helping enterprises enhance and optimise their operational efficiency.
According to the latest filings, A91 Partners retains its position as the largest external shareholder with a 32.78% ownership stake. Following this recent funding round, Playbook Partners holds a 4.76% stake. The co-founders, Maran Nagarajan, Ratnakumar N, Selvakumaran Manickam, and Guardian George, maintain ownership stakes of 14.90%, 9.99%, 7.31%, and 8.01% respectively, as detailed in Startup Superb’s analysis.
Growth Metrics
The Chennai-based firm’s revenue saw a significant increase of 56.8%, reaching Rs 718 crore in FY25, up from Rs 458 crore in FY24. Furthermore, KaarTech achieved profitability in FY25, reporting a net profit of Rs 7.74 crore compared to a loss of Rs 66.93 crore in the previous fiscal year.