KaarTech intends to utilise the fresh capital to scale its data engineering practice, expand global footprint and make acquisitions in developed markets
The SaaS firm provides digital transformation consulting and services to firms looking to migrate operations to their own cloud-based enterprise OS
It will start the process for an IPO in FY27, with an over two-year window left to list as revenue in FY26 is expected to cross ₹1,000 Cr
SaaS firm KaarTech has raised $11 Mn (about ₹100 Cr) in a Series B funding round led by Playbook Partners to strengthen its AI capabilities and increase deployment of its enterprise software solutions.
The startup is looking to expand its customer base across North America and Europe as well as hiring senior talent. Additionally, it intends to utilise the fresh capital to scale its data engineering practice. This includes contextualising enterprise data by making it AI ready and moving it to the cloud while adding enterprise tools to its service offerings.
To put these pieces together, KaarTech will also be looking to make acquisitions in developed markets, especially the geographies it aims to expand in, to accelerate its footprint expansion as well as ability to offer additional services.
The Chennai-based startup helps businesses modernise their enterprise tech systems by moving their core business operations to cloud-based platforms. For this purpose, KaarTech uses its proprietary tool KTern.ai, which helps businesses migrate their existing backend data and applications to the cloud while preparing the infrastructure to support AI-driven tools.
This enables companies to integrate and manage critical functions—such as finance, supply chain, and operations—through a centralised digital system, improving efficiency and operational visibility.
KaarTech’s clientele features the likes of Saudi Aramco, Google, Mitsubishi, Booking.com, BAE Systems, Dammam Airports, among others.
The SaaS startup, which was founded by Maran Nagarajan, Ratnakumar Nagarajan, Selvakumaran Manickam and Gaurdian George in 2006, raised its first institutional investment of $30 Mn in 2023 from A91 Partners.
On the financial front, KaarTech reported its first profitable year in FY25, posting a PAT of ₹7.74 Cr. Its revenue jumped 56% to ₹718 Cr, up from ₹458 Cr in FY24.
It is now looking to start the process for an IPO in FY27, with an over two-year window left to list. This is after its expected to cross ₹1,000 Cr in revenue in FY26 with a target of crossing ₹100 Cr PAT by next fiscal, Playbook Partners founder and managing partner Vikas Choudhury said.
Playbook Partners Expands Focus Areas
Talking about the fund’s strategy going forward amid rising geopolitical tensions, Choudhury said launching Playbook Partners last year — when global tariff tensions were beginning to intensify — helped the firm identify sectors it wanted to avoid.
“We don’t want to invest in businesses that could be meaningfully affected by cross-border trade,” he said, adding that the firm is also cautious about regulatory risks, both globally and within India.
Choudhury added that the firm is also closely watching valuations, noting that public markets have remained resilient despite geopolitical developments.
“Both the US tech markets and the Indian stock markets have been fairly resilient. So we are being careful about whether current valuations will sustain over the long term, focusing on metrics such as cash flows, PE ratios, and return on capital employed,” he said.
Playbook Partners, which primarily invests in growth stage startups, is currently in advanced stages of finishing at least two more deals by the next quarter, with a busy pipeline for the upcoming financial year. It made five investments in FY26 across sectors.
From its current focus on enterprise tech and fintech, the investment firm is looking to expand focus to emerging technologies like space and defense, along with manufacturing and healthtech.
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