Portt says its first-ever round of funding doubles down on its aim to improve transparency across the supply chain for both government and enterprise.
The raise was led by fund manager, CVC Emerging Companies Fund and supported by a number of additional investors.
Founded in 2010, Portt says its organic growth has seen it take on over 30 clients, open three offices – Sydney, Newcastle and Ho Chi Minh City – and hire 35 staff, with its key customers including NSW Health, and the ABC.
“Since founding the business, Andre and I have worked to build a sustainable, growing company, solving a key societal problem, only now taking on funds in order to scale,” Chris Homes, Co-CEO and co-founder of Portt said.
“This injection of funds will help fuel the launch of the next version of our contract and supplier platform, which doubles down on our aim to improve transparency across the supply chain for both government and enterprise.”
“Our growth to date has been a result of both government and companies paying greater attention to their supply chain – and not just to cut costs.”
“Poorly understood procurement practices are a legal risk and when exposed can be particularly embarrassing for all levels of government, who taxpayers expect to be prudent with their funds.”
The company predicts it will continue to grow annual recurring revenue by double digits with the increased capital, “as issues with company and government procurement practices continue to be exposed”.
Homes cites a recent 2018 Auditor-General report into NSW local councils which he says that over 67% local councils have no contract management plan for procurement - and less than a third set formal KPIs for contract performance.
Commenting on their investment, Christian Jensen from CVC Emerging Companies Fund said: ”We are delighted to have closed our investment in Portt in December 2019.
“Portt is an excellent example of the type of opportunity the fund was established to pursue – growing, innovative companies operating as leaders in their markets and run by motivated, aligned, high quality founders with a significant ownership stake in the business.
“Our due diligence confirmed that the Portt software could not only compete with the large legacy incumbent providers but could also provide a simple and flexible solution for small clients switching from manual systems. Having largely completed a software upgrade, we believe Portt is now in an excellent position to scale.”