Through this infusion, 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.
The round valued KaarTech at Rs 2,000 crore.
Armed with fresh funds, the company plans to grow its business in North America and Europe, scale up talent acquisition in those geographies. Additionally the firm plans to acquire companies which can strengthen its product stack in those geographies.
The raise marks a significant step towards an IPO as we shift to an outcome-led enterprise operating system, where AI, data, and enterprise platforms come together to deliver measurable business impact, Maran Nagarajan, CEO, KaarTech said.
Speaking with ET, Playbook Partners managing partner Vikas Choudhury said that the company is helping large enterprise clients migrate their systems to the cloud from on-premises infrastructure. It is also helping these companies become AI-ready, he added.
Choudhury was a president at Reliance Jio between 2017 and 2022, before he launched this fund in 2024.
Founded in 2005, KaarTech is a player offering an enterprise operating system to large conglomerates like Saudi Aramco, Google, Mitsubishi Electric and Booking(dot)com.
“They can actually ride the AI wave, they are not a typical software firm writing codes, they help in cloud migration and work in data applications and cloud infrastructure, a space where they have huge growth opportunities,” Choudhury said.
Despite being an Indian firm, KaarTech gets 100% of its revenue from the Gulf countries, the North American and European markets. The company has built domain-specific knowledge systems and targets large enterprises in aviation, energy and government sectors for clients.
Having grown at a compound annual growth rate of 44% over the last five years, the company is set to close FY26 with revenues of north of Rs 1,000 crore. In FY25, the company had reported a net profit of Rs 7.7 crore on total revenue of Rs 726 crore.
In FY24, the company had recorded a loss of Rs 67 crore, owing to a major jump in expenses in setting up its North America operations.
“The company has managed to get back into profits and is on track to report a Rs 100 crore plus PAT in FY27,” Choudhury said.