Negotiatus, a SaaS business meant to optimize and streamline the purchasing and procurement process for businesses, has today announced the close of a $10 million Series A round.
The funding was led by Rally Ventures, with participation from ERA, 645 Ventures, Green Visor Capital and Stage 2 Capital. This brings the company’s total funding to nearly $20 million.
Negotiatus was founded by Zach Garippa and Tom Jaklitsch with an idea to detangle the process of purchasing supplies for a business. Garippa told TechCrunch that most solutions to this problem focus on one piece of the puzzle, serving finance or operations or the purchasers themselves, but ultimately making the process more difficult for the other functions in the business.
Negotiatus pulls all of those stakeholders into a single platform where they can shop, place orders, track delivery information and manage spend all from one place.
For example, finance departments often have to manually review and remit payment for thousands of invoices a month, normally across at least several vendors and various formats. Negotiatus allows the finance department to view all of that in a weekly or monthly invoice.
Before Negotiatus, purchasers had to cross-reference approved brands, vendors and products each time they needed a new set of pens or toilet paper, jumping from one website to another and tracking shipments across multiple websites. Negotiatus scrapes your past purchase history to show purchasers what they want in a single place. And, of course, users can track those products directly from the Negotiatus dashboard.
Operations can centralize order requests and approvals within the Negotiatus platform, and leverage analytics provided by the company to make better purchasing decisions. Negotiatus scrapes the SKUs themselves, across vendors, to make sure that businesses are making the smartest possible decision with their budget.
The company says that it takes less than a day to get going on the platform.
Negotiatus generates revenue in two ways. The first is a regular subscription model that charges on a monthly basis for each location on the platform. The second is based on spend volume on the platform (which comes from the vendor side).
Thus far, Negotiatus has 300 customers, with a particular popularity among health and wellness businesses (SoulCycle, Orangetheory, CorePower Yoga) and coworking businesses (WeWork, Zeus, Domio). The company hopes to soon expand beyond physical products into software services.
Source: TechCrunch
