A Los Angeles procurement technology startup has secured new investment for growth.
Cloud procurement firm Vroozi announced $4 million in growth equity led by private equity firm Ally Holdings, also based in southern California, according to an announcement on Monday (Aug. 29).
According to Vroozi, the funding follows a year of growth for the company, which has doubled its staff and its revenue in the last year.
“Vroozi continues to grow its top line by more than 100 percent, and additional investment enables Vroozi to further accelerate its rapid expansion and to set another record year of growth,” said the company’s CEO, Steve Olds, in a statement.
Olds also pointed to increasing demand for eProcurement software across industries as another indicator of growth for the firm.
“The global demand for Vroozi’s platform is growing exponentially,” the executive stated. “In the last 12 months, we saw mid-market companies to Fortune 500 enterprises across different industries becoming Vroozi customers.”
Vroozi said it will use the new funding to expand across the U.S. and Europe, as well as to explore new solutions and innovate. The company is looking to strengthen its capabilities in data analytics, artificial intelligence and payables management, it said in its announcement.
The growth equity funding follows after last year’s news that Vroozi obtained Plynt certification for its mobile procurement platform. That certification applies to FinTech solutions involving mobile banking, firewall appliances and payments gateways and assures that the solution is secure and meets regulatory safety standards.
Recent analysis released by Technavio forecasted a nearly 16 percent CAGR for the procurement services industry between 2016 and 2020, driven by a need to cut costs as companies outsource their procurement functions.
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