Despite an overall investment downturn in the startup sector, business-to-business (B2B) software consultant Kaar Technologies raised over $30 million in its most recent funding round, which was headed by A91 Partners.
The firm announced on July 3 that Gautam Mago and Kaushik Anand, partners at A91 Partners, will join the KaarTech board.
“This partnership with A91 will strengthen our capacity for inorganic regional growth and service portfolio expansion. By doing this, we hope to become the go-to partner for clients seeking Digital Transformation journeys in SAP, Cloud ecosystem customer experience, Process Automation, and Data Analytics combined with KaarTech’s core competencies in Logistics, Supply Chain, Financial, and Human Capital Management, said Maran Nagarajan, co-founder, and CEO of KaarTech.
KaarTech, which has its headquarters in Chennai, intends to use the money to expand both organically and inorganically in its current markets in the Middle East and the European Union and to enter the North American market.
Incorporated in 2006 by Nagarajan, Ratnakumar N., Selvakumar M., and George Guardian, KaarTech is a software consulting company with expertise in discrete manufacturing, professional services automation, process manufacturing, and consumer packaged goods. KaarTech specializes in intellectual property and digital services within the SAP (System, Application, and Products) ecosystem.
KaarTech asserts that its revenue has increased over the past 24 months despite having over 2,000 workers. It has about 2,500 projects under contract with prestigious clients like Aramco, and its operations span about 15 different geographical locations.
“With their extensive IP portfolio and digital portfolio, KaarTech soon hopes to be a listed firm, surpassing SAP. KaarTech strives to create a long-lasting Institution and establish itself as a major participant in the Digital Transformation Arena, according to Nagarajan, with multimillion-dollar acquisitions and market expansion.
The funding comes at a time when investors have reduced their investment activity across industries, particularly SaaS, as the startup ecosystem experiences a value correction as a result of macroeconomic headwinds.
After investments of $53 million in Course5 Intelligence, $50 million in SafeSecurity, and $45 million in Capillary Technologies, KaarTech’s deal will represent one of the largest SaaS investments since the start of 2023.
From BlackSoil, KaarTech acquired a venture loan in October 2021 for about Rs 30 crore ($4 million).
The company employed about 950 people in 2021.
“Over the past ten years, they have made a name for themselves as one of the top partners for SAP Consulting Services and Digital Transformation. We are looking forward to collaborating closely with them as they grow their geographic reach in the US and Europe and progress towards becoming a publicly traded company, said Kaushik Anand of A91 Partners.
