Supply Chain Management Is a Win-Win

The Situation

Founded in 1996, Retail Solutions, Inc. (RSI) developed a web-based inventory management system that enables large retailers to accurately track point-of-sale data in real time. The major advantage the technology offers is that it lets stores maximize inventory turnover while minimizing channel inefficiencies. It's a solution that has strong appeal to retailers and consumer product manufacturers.

About the Opportunity

During the last several years RSI rolled out the product to a number of major national chain stores and more than doubled the number of employees from 23 to about 50. After closing a round of venture capital funding and raising other funds, the company invested in product development and marketing activities.

Why the BDCRI Got Involved

To help RSI on its growth path, the BDCRI provided $250,000 in subordinated debt because:

1. RSI offered a robust technology that solved a large-scale problem better than anyone else.
2. The management team, led by President John Jennings and V.P. Ramesh Murthy, had proven its ability to lead and execute - and generate sales.
3. The market potential for RSI services was, and remains, large.

Things worked out so well that RSI was bought by VeriSign, Inc. for $24 million.