Negotiatus Raises $30M in Series B Funding, Rebrands to Order
NEW YORK, January 25, 2022-- Negotiatus, a guided B2B marketplace simplifying the buying process for businesses, today announced it has raised an additional $30M in funding and has rebranded to Order.
The Series B round was led by Stage 2 Capital via a direct investment from MIT's Endowment, a $30B+ fund. Other round participants included Clocktower Ventures, Collaborative Fund, Seven Peaks Ventures, Ankona, and a number of strategics, including Mark Hawkins, former President & CFO Emeritus at Salesforce, who also joined as an Advisor.
"Why would anyone want to manage hundreds of vendors, sign in to different websites, and buy at inconsistent prices? If we can delight users and bring order to their purchasing workflow while saving them money, it's a no brainer," said Jay Po, Managing Partner and Co-Founder at Stage 2 Capital. "From our first investment 2 years ago, we've been so impressed by the Order team and what they've built. From their integrated payments and financial services to the modernization of their purchasing tools, every team that buys anything for their business needs this."
"MITIMCo is impressed by the first principles and mission-driven approach Order has taken to solve a large and acute pain point in business purchasing," said Seth Alexander, Chief Investment Officer at MIT Investment Management Company. "In partnership with Stage 2, MITIMCo is thrilled to be a long-term investor supporting Order's work in streamlining business purchasing."
Founded in 2016, Order leverages embedded fintech to deliver tailored solutions up and down the entire buying process, beginning at the point of purchase. Order's approach blends software and predictive applications to upstream pain points faced by finance, operations, and procurement teams when buying things for their business.
"When you're a business, the seemingly simple act of buying a pen is unnecessarily complex - a number of workflows need to take place across a number of systems and departments. And a business is obviously buying much more than just a pen," said Zach Garippa, Co-Founder & Chief Executive Officer at Order. "If you can intercept this process at the point of purchase, you can radically simplify buying for businesses without needing to reinvent the wheel. You can, though, make it less excruciating for them to turn."
Order operates in a new wave of business known as SaaS+. In addition to a base subscription fee, they also employ embedded fintech as a secondary model.
"SaaS+ businesses are uniquely positioned to solve complex customer problems because the incentives are perfectly aligned with the customer," said Garippa. "In order for a business to increase revenue per customer, they need customers to receive value quickly with increasing value over time. When done correctly, you can follow in the footsteps of companies like SportsEngine and Shopify who have massively high net dollar retention, high revenue predictability, and a rapid - and impressive - product deployment cycle. This perpetuates an amazing flywheel of increased value, increased revenue, and accelerated product innovation."
Order's revenue and spend figures have grown between 200%-300% annually, with net revenue retention above 200%.
"Our net revenue retention has been the key to consistent growth," said Tom Jaklitsch, Co-Founder and Chief Technology Officer at Order. "We're constantly optimizing for customer value along every step of the ordering experience. This has resulted in a product that customers rarely leave and that customers trust with more and more of their spend."
Order's recent funding will be used to continue accelerating their payments business in addition to advancing product development and innovation.
Founded in 2016 and headquartered in New York City, Order is a guided B2B marketplace with a mission to simplify buying for businesses. Powered by predictive applications and embedded fintech, Order sits at the intersection of a business, their vendors, and their payment methods to deliver tailored solutions up and down the entire buying process. With nearly half a billion in annualized spend, hundreds of finance, operations, and procurement teams – across customers like WeWork, SoulCycle, Lume, and High Level Health – rely on Order to guide their company's growth. For more information, visit order.co.
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