New Delhi, March 10 -- A91 Partners-backed Kaar Technologies India Pvt Ltd (KaarTech), a digital transformation consulting company, has bagged $11 million (Rs 100.9 crore) in a Series B funding round led by domestic growth-stage investment firm Playbook Partners.

The fresh capital will be used to accelerate the company's next phase of growth, with a focus on strengthening its artificial intelligence, data, and industry innovation capabilities, KaarTech said.

"This raise marks a defining chapter in KaarTech's journey," said Maran Nagarajan, founder and chief executive of KaarTech. "A 4X growth in enterprise value since our Series A reflects the trust placed in us by our employees, customers, partners, and stakeholders, and the discipline with which we have executed our strategy."

The Chennai-based company also plans to pursue strategic acquisitions to deepen its data engineering and analytics capabilities, which in turn will enable stronger AI-driven insights for enterprise clients.

The company last raised private equity funding in July 2023 from A91 Partners, which invested about Rs 264 crore ($28.8 million), including Rs 214 crore in primary capital and Rs 50 crore through secondary share purchases. Earlier, in October 2021, KaarTech had raised $4 million (around Rs 30 crore then) from Mumbai-based alternative credit platform BlackSoil Capital.

Founded in 2005 by Nagarajan along with Ratnakumar N, Selvakumaran M, and George Guardian, KaarTech built its early franchise around implementations of SAP enterprise software.

It developed a strong presence in the Middle East, serving large corporations across sectors such as energy, manufacturing, and infrastructure, and forging long-term client relationships that helped it scale steadily in its early years.

KaarTech has since repositioned itself as a global SAP-focused player, benefiting from enterprises worldwide modernizing core systems and shifting mission-critical workloads to the cloud. It operates across more than 15 global locations and employs over 3,500 people.

In a statement, KaarTech said it has crossed an annual recurring revenue rate of Rs 1,000 crore, growing at about 44% annually over the past five years.

The company reported total operating income of Rs 718 crore in FY25, up 57% from Rs 458 crore a year ago, according to VCCEdge, the data intelligence platform of VCCircle. The momentum extended into the first half of FY26, with consolidated revenue of Rs 441 crore, up 43% year-on-year, VCCircle reported earlier this year.

KaarTech posted a profit after tax of Rs 7.6 crore in FY25 after slipping into losses the year before. In the first half of FY26, net profit stood at around Rs 13 crore, VCCircle had reported.

Published by HT Digital Content Services with permission from VC Circle.