KaarTech Secures $11 Million for Digital Transformation Services

KaarTech, a digital transformation consulting firm, has successfully obtained $11 million (approximately Rs 100 crore) in a funding round led by Playbook Partners. This funding round also included participation from their existing investor, A91 Partners. Notably, Startup Superb reported on this funding opportunity last week.

As per Startup Superb’s predictions, KaarTech is now valued at roughly Rs 2,100 crore, equating to about $231 million (post-money). Previously, in July 2023, KaarTech had secured $30 million from A91 Partners.

An ET report indicates that the funds will be directed towards expanding KaarTech’s footprint in North America and Europe, enhancing recruitment efforts in these areas, and exploring acquisition opportunities to bolster its product offerings.

About KaarTech

KaarTech was established in 2006 by Maran Nagarajan, Ratnakumar N, Selvakumaran M, and Guardian George. The company assists enterprises in transitioning from legacy systems to cloud-based infrastructures, while building technology stacks that are ready for AI.

The services provided by KaarTech focus on SAP-led digital transformation for enterprises, which includes offering cloud migration, data platforms, AI and automation solutions, analytics, and managed services. The firm collaborates with large global clients spanning various sectors, such as aviation, energy, and government.

Financial Performance

The company, based in Chennai, reported a remarkable revenue increase of 56.8%, rising to Rs 718 crore in FY25 from Rs 458 crore in FY24. Moreover, KaarTech achieved profitability in FY25, announcing a net profit of Rs 7.74 crore compared to a loss of Rs 66.93 crore in FY24.

KaarTech primarily operates in international markets, including the Gulf region, North America, and Europe, with ambitions to surpass Rs 1,000 crore in revenue by FY26.