Chennai-based Kaar Tech, an AI-led enterprise transformation firm, is positioning itself as an ‘Enterprise Operating System’ (EOS) enabler for clients in the AI age, and is looking to close an acquisition in the data analytics space by the end of this fiscal. The company is targeting firms with capabilities across the full data stack — including analytics, data ingestion, pipelines, and management of data lakes and swamps.
The company, which recently raised $11 million (approximately ₹100 crore) in a Series B primary funding round led by Playbook Partners, is also eyeing an IPO in FY27.
“We have got deep expertise in ERP, Cloud, and all such technologies. Data is one space where we think we need to augment our capability,” Maran Nagarajan, CEO of KaarTech, said. So, we would be looking at an acquisition in that space. “Whether it is an Indian or American or European company, what we are looking for is the customer footprint in the West,” he said.
Kaar Tech also plans to file its Draft Red Herring Prospectus (DRHP) by June 1, 2027, and despite recent corrections in IT stocks, it remains optimistic about long-term market fundamentals. “The recent downturn is temporary. These companies continue to deliver strong value, and market rationality will eventually return,” Nagarajan said.
Founded in 2005 in Chennai, KaarTech specialises in Enterprise Operating System (EOS) modernisation across enterprise applications, data, cloud, and AI. It claims to have delivered a ~45 per cent revenue CAGR over the past five years, and has crossed ₹1,000+ crore in revenue.
According to the company, traditional enterprise systems such as SAP, Salesforce, and Workday will continue to remain foundational. However, the way enterprises interact with these systems is set to undergo a shift. The next 10 years will be about an AI fabric that sits on top of legacy systems. Enterprises will increasingly interact with their applications through AI-led orchestration layers, rather than directly, Nagarajan said.
The firm, which has around 3,000 employees, believes that revenue growth is not linear anymore. Our revenue per employee is currently at around $66,000, perhaps the highest in the industry, and we aim to increase this by another 10–15 per cent, said Nagarajan.
Kaar Tech has also been steadily pivoting towards Western markets as part of its global expansion strategy. While nearly 90 per cent of its business came from West Asia a few years ago, the mix is now around 50 per cent West and 50 per cent West Asia, with the share of revenue from the West expected to rise to 60–65 per cent over the next few years. While geopolitical disruptions in West Asia pose short-term risks, Nagarajan views them as temporary.
Published on April 14, 2026