Digital transformation startup KaarTech raises $30 million in first external funding

As a part of the transaction, Gautam Mago and Kaushik Anand from A91 Partners will join the KaarTech board.

The company said it will use the funds to further its growth across the Middle East, the European Union and North America. It will largely use the funding to make inorganic bets and acquisitions, and build diversified lines of business.

Founded in 2006 by Maran Nagarajan, Ratnakumar N, Selvakumaran M and George Guardian, KaarTech provides IP (intellectual property) and digital services in the SAP ecosystem with expertise in the fields of discrete manufacturing, professional services automation, process manufacturing and consumer packaged goods.

The company claims to have doubled its revenues in the last 24 months. KaarTech, which has been bootstrapped until now, clocked around Rs 350 crore in revenues in FY23.

“The partnership with A91 will catapult KaarTech into an unprecedented era of expansion, propelling us towards our aspiration of going public, despite our humble bootstrapped origins. This association will bolster our ability to expand geographically and augment our services portfolio inorganically,” said Nagarajan, who is also the chief executive of the business. “In doing so, we aspire to be the partner of choice for customers looking for digital transformation journeys in SAP, cloud ecosystem customer experience, process automation and data analytics.”

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The company claims to have operations across 15 global regions and to have executed over 2,500 projects, with marquee customers such as Aramco. “The company was founded in 2006 and has been focussed on SAP consulting. They’ve had faster growth in the last few years due to their success in working with the large trends in SAP S/4 HANA and cloud implementation,” Kaushik Anand, partner, A91, told ET. “We believe that this trend is here to stay over the next decade, as they diversify the business. We wanted to invest in founders who want to build out the business in the coming years and take it public versus looking to get acquired.”

SAP S/4HANA is an ERP business suite based on the SAP HANA in-memory database, which allows companies to perform transactions and analyse business data in real time.

The company, which has clocked profits over the years, claims to be gearing up for a public listing.