KaarTech, a Chennai-based digital transformation and technology consulting firm, has secured ₹100 crore in a Series B funding round led by growth investor Playbook Partners. The capital will accelerate the company’s expansion in enterprise technology and SAP consulting, fund operational scaling, and support infrastructure and growth initiatives.
Details of the transaction
According to regulatory filings, the fundraise was completed through the issuance of 4,00,520 Series B compulsorily convertible cumulative preference shares (CCPS) at ₹2,496.75 per share. The proceeds are earmarked for strengthening operational capabilities, expanding infrastructure, supporting business growth programmes and meeting general corporate requirements.
Financial performance and turnaround
KaarTech reported consolidated revenue of about ₹718 crore for FY25, up 56.8% from ₹458 crore in FY24. The company returned to profitability in FY25, reporting a net profit of ₹7.74 crore after a net loss of ₹66.93 crore in the prior year, reflecting improved operational efficiency and stronger deal momentum in enterprise digital transformation projects.
The performance comes amid rising demand for SAP-led business transformation, cloud migration, automation and analytics—areas where KaarTech has focused its services.
Company background and service offerings
Founded in 2006 by Maran Nagarajan, Ratnakumar N, Selvakumaran M and Guardian George, KaarTech specialises in SAP consulting and enterprise digital transformation. Its offerings include SAP implementation and support, cloud services, AI-driven automation, data analytics and managed services.
Over the years the company has developed a presence across multiple markets and industry verticals, targeting large-scale digital modernisation initiatives as enterprises prioritise technology-led efficiency and agility.
Investor position and shareholding
Following the deal, Playbook Partners has acquired an estimated 4.76% stake in KaarTech. A91 Partners remains one of the largest external shareholders, while the founding team continues to retain meaningful ownership, signalling continuity in strategic leadership.
Playbook Partners typically backs growth-stage businesses that have crossed the ₹100 crore revenue threshold and are preparing for accelerated expansion; the investment in KaarTech aligns with this strategy.
Implications for India’s enterprise technology landscape
The transaction underscores continued investor interest in mid-sized technology services firms that combine scale with profitability. As Indian enterprises increase investments in cloud, AI, analytics and automation, specialised service providers like KaarTech are well positioned to capture demand.
The ₹100 crore infusion is expected to support talent acquisition, geographic expansion, deeper client engagement and capability enhancement, enabling KaarTech to capitalise on the broader enterprise technology boom both in India and overseas.
