Looks to Procure $70M in Second Round Funding

In a week that saw a number of financial talking heads suggest that the Federal Reserve’s most recent interest rate hike will help slow down the nation’s speeding e-economy, online procurement outfit ignored the prognosticators as it continued to aggressively market a $70 million Series B offering.

The deal is expected to close by the end of July and will follow up on a $12.8 million first round transaction that was completed earlier this year.

Headquartered in Parsippany, N.J., hopes to provide a faster and cheaper alternative to the cumbersome offline consulting practices that currently dominate the business-to-business procurement industry.

“What it takes a traditional consulting firm nine months to do, we can get done in two months,” said Katherine Vilchinsky, chief financial officer of “We’re not talking about getting people pens and pencils here, but things like 30 million corrugated containers, and it’s the sort of thing that is really enhanced by Internet technology.”

The business plan currently has a vast majority of its revenues derived from the buy-side, although that strategy could conceivably be altered once the firm embarks on a series of mergers and acquisitions financed by the prospective venture deal.

In fact, when announced its Series A transaction back in March, it simultaneously said that it had acquired strategic procurement analysis organization Analytics Inc. and its intention to acquire The Center For Purchasing Excellence, a network of academics and supply chain professionals.

That previous deal was led by private investment firm Apollo Management. Additional participants included Rare Medium Group Inc., Indigo Capital, Odeon Capital Partners and NetGain.

“A lot of the information technology marketplaces out there are pretty simplistic transaction-based models,” said Derrick Chen, general partner with Rare Medium Group. “[] is a sourcing-focused operation that gets closer to the type of relationship area which is where I think is where the Web is going.”