Atlanta — June 12, 2003 — Strategic sourcing solution provider Procuri has completed its latest round of funding, raising $10 million that the company plans to use to step up its sales and product development efforts.
The latest round, led by Insight Venture Partners, marks the first institutional round of funding for the strategic sourcing provider.
"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 F. Morel, Sr., Procuri's president and CEO. "With this investment we continue to build value as our shareholders receive the benefit of a significant infusion of growth capital."
Procuri said it would use the funds to expand its sales and marketing efforts within the U.S. and in key global markets and accelerate product development. Additionally, the company said it would explore product acquisitions in line with its strategic plan.
Commenting on the funding, Deven Parekh, managing director at Insight, said the company has been looking to get into the sourcing solutions space. "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, adding that Procuri was Insight's first choice for funding among sourcing solution providers.
Parekh is set to join Procuri's board of directors.
The first quarter of 2003 has been kind to Procuri. In addition to remaining cash flow positive and seeing 100 percent customer renewal, the provider has also added 13 new customers.
Founded in 1999, Procuri currently has more than 65 global customers in about 100 countries and across a variety of industries, including manufacturing, consumer packaged goods and pharmaceutical. Announced customers include Procter & Gamble, Eastman Kodak, ITT Industries, KLM Royal Dutch Airlines, Rio Tinto and U.S. Steel.