Spend management software application which delivers 15-40% savings to organisations

Basic Information

The company’s spend management software application delivers 15-40% savings to organisations such as JP Morgan, Pfizer and Enfield Council and has 50,000 users in 28 countries.
The software improves the efficiency of buying complex expenditure categories such as print and marketing services where 85% by value (£173bn p.a. in Europe and the US) is purchased manually using phone, fax or email. The application enables buyers to specify requirements, invite suppliers to bid, place and manage orders and process invoices. Suppliers can use the software to respond to pricing requests, receive and process orders and invoices. Buyers can invite suppliers to join their network and vice versa.
The software is sold as a subscription service, with customers paying monthly, quarterly or annually in advance – providing predictable, recurring revenue. The highly modular application provides significant up-selling opportunities from retained customers. Consulting, implementation and training fees provide other sources of income. There are six competitors; mostly US based. The largest turns-over £20m p.a. and has a market share of less than 5%.
The company has been trading for eight years and turns over c. £0.5m p.a. (c. 70% of which is recurring) and is profitable.
Having built the software, refined its proposition, and proven there is demand by building a sizeable customer base, the company has reached a point where it is right to invest in the infrastructure to grow. This includes additional sales resource, awareness building marketing activity and enhanced software functionality to improve online sign-up and user configuration, as well as metering and billing processes. Directors and other shareholders have invested c. £260k, and the company is seeking £300k to create a platform for growth, provisionally split £200k equity / £100k debt.
 

Based in Avon, seeking investment of £200,000.

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