RealTime IT News

Hyperchannel Secures $24 Million Funding

European business-to-business trading hub Hyperchannel announced Wednesday the completion of a $24 million funding round.

The latest financing was led by GS Capital Partners III, L.P. and affiliates managed by Goldman Sachs, GE Capital's Equity Group and MRV Communications Inc.

Hyperchannel has developed an online trading system named Hyporium which enables buyers and sellers in the IT market to conduct online procurement using highly automated ordering.

Hyperchannel has already launched Hyporium in the U.K., France, Scandinavia, the Netherlands and Germany, and will use some of the funding to roll out the system in Spain, Italy and Belgium.

"Our intent with this round of financing is to deliver on our vision and realize our growth potential," said Nick Kandola, Hyperchannel's president and chief executive officer.

Speaking for Goldman Sachs, Executive Director Atul Kapur said that e-commerce solutions were a very attractive area for investment.

"This funding will allow Hyporium to accelerate its development as one of the leaders in European IT business-to-business solutions," said Kapur.

Edmund Glazer, chief finance officer, MRV Communications, pointed out that Goldman Sachs and GE Equity were adding significant value to Hyperchannel by establishing strong commercial alliances and providing access to new markets.

Formed in November 1997, Hyperchannel taken a two-tier approach in developing an e-commerce solution for the IT channel.

On the first level, the Hyporium Trading Hub lets manufacturers supply their goods to one-stop reseller shops, while the second tier enables resellers to offer an online service to end-users.