Marrakech, the Dublin company that provides an internet-based platform for firms to manage their buying and selling processes, has raised $10 million (€9.93 million) in the final closing of its third round of funding.
New investors Gartmore Group and AMT Sybex join existing investors Doughty Hanson Technology Ventures and Cross Atlantic Capital Partners in the financing round.
The funding is in addition to the $16.5 million raised in the first closing during the fourth quarter of 2001, making Marrakech one of the largest venture capital-funded companies in the State.
"I think the interesting thing investors see is that we've actually cracked [the business model]," said Marrakech chief executive, Mr Kelly Murphy.
Founded in 1998 and backed with initial investments by Mr Denis O'Brien and Mr Leslie Buckley, Marrakech employs 120 people, mostly in its Irish and British offices. Due to the economic downturn, the company has cut its workforce over the past year from a high of about 200.
Marrakech provides an online suite of business software services - hosted in Dallas, Texas - that enables companies to carry out involved processes such as procurement and invoicing.
The advantage for companies is they don't need to buy in expensive software packages.
"We allow them to connect once to us and then they can connect to their trading partners," Mr Murphy said.
The approach is new and similar to Salesforce.com's business model of providing an online suite of sales management software.
Mr Murphy said that Marrakech was unusual in that it had no major competitor, although IBM has recently made some moves into offering an online procurement service.
"There isn't anyone we're trying to displace; we're just trying to displace paper [in the office]," Mr Murphy said.
The company will use the funding round to help it build channel partners and grow its customer base, he added.
He expected Marrakech to reach the break-even point "probably in the first half of next year". Another funding round is likely in 12 months.
The company targets very large corporations, typically those with at least a $1 billion market capitalisation, according to Mr Murphy.
Customers include British Sugar, JCB and Jefferson Smurfit Group.
