Chennai-based digital transformation consulting firm KaarTech has secured Rs 100 crore (approximately $11 million) in a fresh Series B funding round led by Playbook Partners, known for backing brands like Renee Cosmetics.
The investment comes after a strong financial year for the company, marked by profitability and a 56% year-on-year revenue growth in FY25.
Funding Details
According to regulatory filings with the Registrar of Companies (RoC), KaarTech’s board approved the issuance of:
- 4,00,520 Series B Compulsorily Convertible Preference Shares (CCPS)
- Issued at Rs 2,496.75 per share
- Raising a total of Rs 100 crore
Post this round, KaarTech’s valuation is estimated at approximately Rs 2,100 crore ($231 million) on a post-money basis.
How the Funds Will Be Used
The company plans to utilise the capital towards:
- Capital expenditure
- Business expansion initiatives
- Strengthening working capital
This funding is expected to support scaling operations and expanding global delivery capabilities.
Strong Financial Performance in FY25
KaarTech delivered impressive financial growth in FY25:
- Revenue increased 56.8% to Rs 718 crore (up from Rs 458 crore in FY24)
- The company turned profitable, reporting a net profit of Rs 7.74 crore
- In comparison, it had posted a net loss of Rs 66.93 crore in FY24
The turnaround reflects improved operational efficiency and increased enterprise demand for digital transformation services.
Previous Investment and Shareholding Structure
KaarTech had earlier raised $30 million in July 2023 from A91 Partners.
Current shareholding structure (post-round):
- A91 Partners – 32.78% (largest external shareholder)
- Playbook Partners – 4.76%
- Maran Nagarajan – 14.90%
- Ratnakumar N – 9.99%
- Selvakumaran Manickam – 7.31%
- Guardian George – 8.01%
About KaarTech
Founded in 2006 by Maran Nagarajan, Ratnakumar N, Selvakumaran Manickam, and Guardian George, KaarTech specialises in SAP-led digital transformation services.
Its offerings include:
- SAP implementation and support
- Cloud and data services
- AI and automation solutions
- Advanced analytics
- Managed enterprise services
The company helps enterprises streamline operations and accelerate digital adoption.
Growing Demand for Enterprise Digital Transformation
With enterprises increasingly investing in:
- Cloud migration
- AI-driven automation
- Data-led decision making
digital consulting firms like KaarTech are witnessing strong growth momentum.
The company’s profitability milestone further strengthens its position in India’s enterprise tech services market.
Conclusion
KaarTech’s Rs 100 crore fundraise reflects investor confidence in profitable, growth-stage digital consulting firms. Backed by strong revenue growth and improved margins, the company appears well-positioned to expand its footprint in global SAP and enterprise transformation markets.
As Indian tech consulting firms scale internationally, KaarTech’s performance signals continued opportunity in the enterprise digital transformation space.
