AN INTERNET company set up by two Oxford University students has launched an online marketplace to allow small businesses to buy products and services via the Web.

Mondus.com, based at the Oxford Innovation Centre in Mill Street, Osney, says its system enables small and medium-sized businesses to obtain free competitive quotes from suppliers of everyday products and services.

The company says its service saves both suppliers and buyers time and money - removing the need for the buyers to trawl through directory listings and Web sites to identify suppliers, and the need for suppliers to invest in costly marketing.

The company was set up by Rouzbeh Pirouz and Alexander Straub, both 27, who met in New York at a party for Oxford Rhodes Scholars from North America.

While at university they set up their own Internet company, which won £1m of venture capital funding from 3i. They took space at the Oxford Innovation Centre, where they share the building with other start-up companies backed by the Oxford Trust, a charity which promotes science and technology.

Since then they have received another £7.4m from Eden Capital and expanded to 30 or so staff, many of them friends from the university. Their online auction process works by suppliers registering to offer couriers, printing, Internet services, computer services and patent services. Businesses wanting to buy a specific service can register free, sit back and wait for the offers to arrive.

Mr Pirouz said: "Small and medium enterprises are being left behind by the Web revolution, yet ironically are ideally positioned to benefit from it. Without costly investment in Web site development and advertising, suppliers can reach a greater audience.

"Simultaneously, purchasers can quickly obtain the right services and products quickly and for a lower cost."

Mondus.com will make its money by charging its 2,000 registered suppliers a commission fee of between 0.5 per cent and five per cent of the transaction.

Later the service will expand to include advertising, promotional items, trade-show equipment, business caterers, printing, web design, mailing lists, ISPs and cleaning services.

Mr Pirouz said: "We aim to make the procurement process cheaper, faster and easier than at present.

Story date: Wednesday 27 October

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