Venture deals have been few and far between in Georgia this year, but startup Procuri, Inc. closed on a big round Wednesday.
The developer of strategic sourcing and procurement software took in its first institutional investment – $10 million from Insight Venture Partners.
Procuri said the funds would be used to broaden its sales and marketing efforts, speed up product development and look to acquire other products.
The deal is just the 16th in Georgia this year — about half the number generated a year ago.
“Our initial, private round of funding allowed us to grow Procuri to
become cash flow positive and remain profitable for the last year,” said Mark Morel, the firm’s president and chief executive officer. “With this investment we continue to build value as our shareholders receive the benefit of a significant infusion of growth capital.”
As part of the investment, Deven Parekh, managing director of New York-based Insight Venture Partners, joins Procuri’s board.
“Because sourcing solutions have such an immediate return on investment and clearly make an impact on an organization’s bottom line, Insight has been very interested in investing in this sector,” Parekh said in a statement. “With its market leading product offering, unequaled customer list, 100 percent customer renewal rate and unparalleled financial performance, Procuri was our first choice. We strongly believe in Procuri’s business model, growth potential and management team.”
Procuri offers a self-directed, web-based strategic sourcing platform that can reduce procurement costs by 25 percent and delivery cycle time by 75 percent.
The company already has won 65 customers, such as Procter & Gamble, Eastman Kodak, ITT Industries, KLM Royal Dutch Airlines and U.S. Steel.