Technology procurement startup AppDirect raises another $100 million

AppDirect Inc. is a startup that helps organizations procure technology services more efficiently. announced announced that it has secured $100 million in new funding.

Funding was provided by Canadian asset management company CDPQ.that was before invested $80 million to AppDirect as part of its 2020 funding round. Since its founding in 2009, the procurement software provider has raised more than $500 million from CDPQ and other institutional backers.

San Francisco-based AppDirect operates a marketplace where organizations can purchase technology services from a variety of suppliers in one place. This platform provides access to cloud applications, internet subscriptions, and a variety of other services. According to AppDirect, the company’s supplier network includes more than 600 companies, including major industry players such as Google LLC and IBM Corp.

In addition to core procurement functionality, the platform also provides user management tools. Businesses can use it to create employee accounts in cloud applications purchased through AppDirect. Additionally, the tool promises to automate related tasks such as processing employee login requests.

The second core product is a platform that allows companies to create their own technology procurement portals. The software maker says the service is primarily aimed at IT advisory firms. Such companies can create web portals that allow customers to purchase technology products on a self-service basis.

The marketplace creation platform comes with prepackaged interface templates. For companies with more advanced requirements, the product includes a set of built-in application programming interfaces. You can use these APIs to customize your marketplace’s interface design, product catalog, and other important details.

The $100 million investment will be used to strengthen Capital Invest, the company’s second service offering to IT advisory firms. The service allows companies to raise debt financing for business growth initiatives without selling stock.

AppDirect positions Capital Invest as a more convenient alternative to traditional liquidity sources. According to the company, eligible IT advisory firms can receive an “immediate upfront payment” after a debt financing round is completed through the service. Terms of the transaction will be set based on the company’s recurring revenue and business data from the past three years.

“To respond to today’s ever-changing market, technology players need quick access to capital to accelerate growth,” said Chief Revenue Officer Emmanuel Bertolin. “Increasing access to this program is even more important as AppDirect Capital allows technology advisors to leverage innovative capital options to grow their business or invest in their future.”

Capital Invest isn’t the only element of AppDirect’s revenue growth strategy. Last month, the company previewed AI Marketplace is an upcoming tool that allows customers to create artificial intelligence bots based on popular large-scale language models. AppDirect says these bots can help with tasks such as helping IT advisory firms find upsell opportunities.

Image: AppDirect