Bootstrapped KaarTech Raises ₹100 Crore
Chennai-based KaarTech, a digital transformation consultancy with deep SAP expertise, has raised ₹100 crore (≈$11M) from Playbook Partners. It's the firm's first major external funding after years of bootstrapping, with the capital earmarked to accelerate its SaaS platform development and expand into the US and Europe.
Founded in 2006 by four friends—Maran Nagarajan, Ratnakumar N, Selvakumaran M, and Guardian George—KaarTech was built from the ground up after they left corporate jobs abroad to return to their hometown of Chennai. They pooled their personal savings of just ₹30-40 lakh to start the venture, driven by a vision to build a lasting institution rather than chase short-term gains. For 17 years, the company remained bootstrapped, a journey that co-founder Maran Nagarajan says taught them immense fiscal discipline. The focus was on generating enough cash surplus month after month to create a sustainable entity without external capital. This long-haul approach contrasts sharply with the venture-backed path common in the tech industry. The firm's financial discipline has paid off with significant growth. KaarTech's revenue surged 56.8% to ₹718 crore in fiscal year 2025, up from ₹458 crore in FY24. The company also achieved profitability in FY25, reporting a net profit of ₹7.74 crore after a loss of ₹66.93 crore in the previous year. This ₹100 crore round isn't their first external funding. The company broke its bootstrapping streak in July 2023 when it raised a much larger $30 million round from A91 Partners. That initial infusion was aimed at fueling both organic and inorganic growth, particularly in North America and Europe. Following the latest investment from Playbook Partners, KaarTech is valued at approximately ₹2,100 crore (around $231 million). A91 Partners remains the largest external shareholder with a 32.78% stake, while Playbook Partners now holds 4.76%. The four co-founders collectively retain a substantial stake in the company they started. Beyond its core SAP consulting services, KaarTech has developed its own proprietary SaaS platforms, including KTern.AI for automating SAP digital transformations and KEBS, an enterprise SaaS to unify corporate operations. This move from pure services to building IP aligns with its goal of scaling globally. Even before taking its first venture funding, KaarTech's leadership expressed ambitions to eventually go public. The partnership with A91 Partners was seen as a step to accelerate that journey, and the new capital from Playbook Partners will further bolster its expansion and portfolio development.
