Venture capitalists are providing millions of dollars to help propel the growth of a procure-to-pay software startup that has already secured some major contracts this year.
In an announcement made Monday (Oct. 5), startup BuyerQuest announced that it has closed an investment round that saw backers pump $7 million into the company. The round was led by Argentum and included First Analysis, according to reports.
BuyerQuest provides procure-to-pay software for companies in an effort to bring a B2C buying experience to enterprise procurement officials. The startup said that this year has already been one of significant growth thanks to nabbing contracts with large corporations and educational groups. Its client base is global, though BuyerQuest did not release any specifics of the companies that use its services.
The startup’s chief executive officer, Jack Mulloy, said in a statement that his firm wants large corporations to take a new look at procurement. “BuyerQuest is fundamentally changing the way large organizations approach enterprise procure-to-pay,” he said. “As we continue to win marquee, global customers, it’s imperative that BuyerQuest remains on the forefront of innovation in the procure-to-pay market.”
Reports said the firm will use the $7 million to add new services to its suite of cloud-based offerings and to enhance existing capabilities, including B2B payments, early payment discount capture and the operation of its Supplier Network. The firm also said that it would look to expand geographically in response to its international customer base, though BuyerQuest did not indicate which markets, specifically, it would be looking to enter in the near future.
In a statement, Argentum Managing Partner Daniel Raynor, who has now joined BuyerQuest’s board of directors, said it’s the startup’s B2C approach to procurement that makes the company stand out.
[bctt tweet=”By offering a familiar B2C eCommerce experience, BuyerQuest’s solution is driving higher rates of user adoption.”]
“After speaking with these clients, it is very clear that by offering a familiar B2C eCommerce experience to corporate purchasers, BuyerQuest’s solution is driving higher rates of user adoption, increasing the amount of spend flowing to preferred suppliers and delivering substantial savings to its clients,” Raynor said.
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