Venture Capital fund Kalaari Capital has confirmed that it has invested Rs 5 crore in small businesses purchase aggregator Power2sme, to help the company expand further in the Indian market.

Power2sme will use the proceeds to expand its presence across newer geographies like including Mumbai, Pune, Ahmedabad, Chandigarh; and hiring talent as well as increasing its brand visibility.

Kalaari Capital has teamed up with Power2sme's existing investor Inventus Capital Partners in expanding the Series "A" fund raising program.

Kola said that Power2sme is one of fastest growing businesses in India's B2B space, and that they saw huge potential in their business model.

Speaking on the topic, Kola said, "We see immense potential in their business model and are highly confident of the capability of the team to execute it well."

Kalaari Capital, which operates a $160 million fund, was created in early 2012 by some of the partners behind IndoUS Venture Partners, including Kumar Shiralagi and Vani Kola.

Power2sme provides a platform for obtaining the best pricing for SMEs procurement requirements, door-step delivery and online tracking of orders. Currently, it concentrates on industries like precision engineering, construction and manufacturing.