Chennai-headquartered IT services company KaarTech has successfully raised $11 million in a Series B primary funding round led by Playbook Partners. According to regulatory filings, the company approved the issuance of 4,00,520 Series B compulsorily convertible preference shares (CCPS) at an issue price of ₹2,496.75 each to raise the fresh capital from Playbook Partners. The company plans to use the capital to support acquisitions in data engineering and analytics while expanding its enterprise operating system platform across applications, data and cloud services. Following the funding round, KaarTech is estimated to be valued at around ₹2,100 crore (approximately $231 million) on a post-money basis. The fresh capital infusion will be directed toward strategic acquisitions in Data Engineering and Analytics, further strengthening KaarTech's platform and accelerating the deployment of its Agentic AI capabilities across enterprise programs.
As reported by The Hindu BusinessLine, KaarTech has demonstrated strong financial growth over the past five years, crossing ₹1,000 crore in revenue during this period. The company has delivered a ~45% revenue CAGR over the past five years, demonstrating consistent growth momentum. The company's platform KTern.AI supports enterprise transformation programmes and embeds governance in project execution. Founder and CEO Maran Nagarajan stated that this funding will support the company's next phase of growth and marks a defining chapter in KaarTech's journey towards an IPO, reflecting the trust placed in the company by employees, customers, partners, and stakeholders. The Chennai-based firm's revenue grew 56.8% to ₹718 crore in FY25 from ₹458 crore in FY24, as reported by The Kredible. KaarTech has turned profitable in FY25, reporting a net profit of ₹7.74 crore in FY25 compared to a loss of ₹66.93 crore in FY24. The company primarily serves international markets, including the Gulf region, North America and Europe, and is targeting revenue of more than ₹1,000 crore in FY26. The newly raised capital will be used to expand KaarTech's presence in key international markets, particularly North America and Europe, strengthen hiring in these regions, and explore potential acquisitions that could enhance its product and technology stack.
According to The Hindu BusinessLine, Managing Partner at Playbook Partners Vikas Choudhury highlighted the firm's backing of founders building enduring institutions with strong execution discipline. He noted that KaarTech stands out for its deep domain expertise, AI-driven transformation capabilities, and strong client relationships. The investment will enhance global delivery scale and strengthen go-to-market efforts for outcome-based, AI-led transformation services. As a truly global player with operations spanning the USA, Europe, and the Middle East, KaarTech has demonstrated exemplary value creation over the last few years. Choudhury, who was a president at Reliance Jio between 2017 and 2022 before launching this fund in 2024, emphasized that KaarTech is well-positioned to ride the AI wave, particularly in cloud migration and data applications where it has significant growth opportunities. Despite being an Indian firm, KaarTech gets 100% of its revenue from the Gulf countries, North American and European markets.
The Chennai-based firm's revenue grew 56.8% to ₹718 crore in FY25 from ₹458 crore in FY24, as reported by The Kredible. KaarTech has turned profitable in FY25, reporting a net profit of ₹7.74 crore in FY25 compared to a loss of ₹66.93 crore in FY24. The company primarily serves international markets, including the Gulf region, North America and Europe, and is targeting revenue of more than ₹1,000 crore in FY26. The newly raised capital will be used to expand KaarTech's presence in key international markets, particularly North America and Europe, strengthen hiring in these regions, and explore potential acquisitions that could enhance its product and technology stack. Additionally, the funds will support capital expenditure, business expansion initiatives, and general working capital requirements. KaarTech has built domain-specific knowledge systems and targets large enterprises in aviation, energy and government sectors for clients.
As reported by The Hindu BusinessLine, KaarTech, founded in 2006 by Maran Nagarajan, Ratnakumar N, Selvakumaran Manickam, and Guardian George, has delivered more than 3,300 projects for enterprises including Saudi Aramco. The company employs more than 3,000 people across 15 regions. KaarTech specialises in SAP-led digital transformation services for enterprises, helping organisations modernise legacy systems by migrating them to cloud-based infrastructure and building AI-ready technology environments. Its service offerings include SAP implementation and support, cloud migration, data platforms, artificial intelligence-driven automation, analytics, and managed services. The company works with large global clients across multiple sectors including aviation, energy, and government, and continues to expand its global delivery capabilities as it scales its digital transformation services and strengthens its position in the enterprise technology sector. Through this funding round, Playbook Partners joins existing investors like Mumbai-based A91 Partners, which currently owns around 30% in the firm. A91 Partners had invested $30 million into KaarTech in 2023, and the current round valued KaarTech at ₹2,000 crore.
