KaarTech, a Chennai-based digital transformation and SAP consulting firm, has secured ₹100 crore in a Series B funding round led by growth investor Playbook Partners. The capital will be used to scale operations, expand infrastructure, and fund business growth as the company builds on recent revenue gains and a return to profitability.
Details of the funding round
According to regulatory filings, the round involved the issuance of 4,00,520 Series B compulsorily convertible cumulative preference shares (CCPS) at an issue price of ₹2,496.75 per share. Playbook Partners led the investment, taking an estimated 4.76% stake in KaarTech, while existing investor A91 Partners remains one of the largest external shareholders.
Financial performance and operational momentum
KaarTech reported consolidated revenue of about ₹718 crore for the financial year FY25, a 56.8% increase from ₹458 crore in FY24. The company also returned to profitability, recording a net profit of ₹7.74 crore in FY25 after a net loss of ₹66.93 crore in the previous year.
Management attributes the turnaround to improved operational efficiency and stronger deal momentum in large-scale enterprise digital transformation projects, particularly those driven by SAP modernisation, cloud migration, automation and analytics.
Business focus and market positioning
Founded in 2006 by Maran Nagarajan, Ratnakumar N, Selvakumaran M and Guardian George, KaarTech specialises in SAP implementation and support, cloud services, AI-powered automation, data analytics and managed services. The firm serves enterprises across industry verticals undertaking digital modernisation and technology-led efficiency programmes.
Over the years KaarTech has expanded its footprint beyond India, positioning itself as a mid-sized player targeting enterprises that require end-to-end SAP and cloud transformation capabilities.
Implications for growth and the enterprise technology sector
The fresh capital is expected to support talent hiring, capability building, deeper client engagement and geographic expansion. Playbook Partners’ investment aligns with its strategy of backing growth-stage companies that have crossed the ₹100 crore revenue threshold and are seeking to scale further.
Industry observers say India’s enterprise technology and consulting market continues to see sustained demand for cloud, AI, analytics and automation services. Mid-sized specialists such as KaarTech, showing strong revenue growth and a path to profitability, are increasingly attracting structured growth capital as enterprises prioritise digital transformation.
