B of a pseudo-group

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I am thinking about the classifying space construction.

The loop space functor Ω : Grpd₀ ⭢ Grpd sends a space to an internal pseudo group.

Elsewhere I have seen people write BΩX for a based connected CW-complex.

I am trying to think about how the construction of E(ΩX) should go, and then form B(ΩX) as a quotient of it by an action. ΩX is an internal pseudo group; it is associative and unitial up to homotopy.

I can't figure out how to describe a homotopy colimit of a pseudo group which will produce a contractible space. I think it should involve a geometric realization

$\text{coeq}$ $\amalg$ ΩX${}^{n}$ × Δ${}^{m}$ $\Rightarrow$ $\amalg$ ΩX${}^{n}$ × Δ${}^{n}$.

My question is whether this defines a pseudo functor which can play the role of E.