Foodtrader.com (www.foodtrader.com), one of the leading online business-to-business marketplaces and eProcurement solutions for the food and agriculture industry, today announced it has raised more than $15 million in second round financing through a private placement arranged by Allen & Company. The round was led by East RiverVentures, with further investment from Massachusetts Mutual Life Insurance Company, Watershed Capital and others. Foodtrader.com will use the funds to enhance its technology platform, as well for business development, sales effort expansion and general working capital.
“This latest capital infusion will primarily be used to enhance our preeminent technology and develop programs that will enable our customers to enter a fully automated online procurement community,” said Frank Tomasino, chairman and founder of Foodtrader.com.
“Through our investors’ support, we will continue to have the flexibility to execute our business objectives, and most importantly to perfect a full-service eProcurement solution for companies to maximize their sourcing efficiencies, streamline their operations and refine existing supplier relationships. We have positioned ourselves to become the leading full-service solution for the entire food and agriculture industry. This financing gives us the necessary financial support to achieve that goal,” he said.
Already, the company has developed a custom procurement platform that allows buyers to quickly load their traditional supplier databases into a personalized purchasing application. Buyers then have the option of requesting quotes from their traditional suppliers or expanding the request for quote process to the general Foodtrader.com marketplace.
“East River was excited by the opportunity to invest in Foodtrader because of the technology the company has developed, as well as its exceptional management team, which combines extensive food industry expertise with experience executing early-stage companies,” said Andrew Russell, principal, East River Ventures. “In today’s environment, the only B2B companies that will succeed are those whose management teams possess in-depth knowledge to address industry-specific issues. Foodtrader has such a team.”
Foodtrader.com offers the global food industry a comprehensive menu of services, including a marketplace exchange, value deals (excess inventory clearance), storefronts (online branding through transactional Web pages), reverse auctions for RFQs (request for quotes) and core logistical services, including trade finance, insurance, transportation and inspection. The site serves virtually all food and agriculture industry segments, including produce, meat, seafood, poultry, spices, ingredients, grains, dairy, and organic.
Miami-based Foodtrader.com (www.foodtrader.com) is one of the largest and most comprehensive online business-to-business marketplaces and eProcurement solutions for the food and agriculture industry and was recently named “Best of the Web” by Forbes magazine. More than 13,000 buyers and sellers in 180 countries use the site to trade food products more efficiently, consult with industry experts, and take advantage of a complete global sourcing and purchasing solution. Foodtrader.com was the first online business-to-business food exchange to establish a presence in South America when it opened offices in Argentina in 1999. In 2000, the Company opened offices throughout Latin America and Europe to serve 33 international markets, giving it the most extensive worldwide presence of any U.S.-based online food exchange.