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London-based start-up Magentic has raised $5.5m in seed funding led by Sequoia Capital to deploy AI agents that hunt down savings in manufacturing supply chains. The company's "Mages" target post-contract value leakage including things like unclaimed credits, compliance gaps, and fractured supplier data, all which McKinsey estimates costs manufacturers c.2% of total spending annually.
Founded by McKinsey alumnus Robin Van Aeken and Oxford PhD Odhran O'Donoghue, Magentic addresses a big pain point in procurement where it claims 90% of Chief Procurement Officers struggle with supplier compliance issues. The software operates in messy, unstructured environments where traditional tools often fail, claiming that one client achieved 4% savings on spare parts procurement – impressive stuff. Indeed, we took a deep dive into the impact of AI in supply chains last year in our AI in Supply Chain report - Making Supply Chains Intelligent. TechSectorViews subscribers can read more here.
With backing from The Westly Group, First Momentum Ventures, and angels from SAP, Airbus, and McKinsey, Magentic represents the shift from traditional SaaS models to AI-delivered outcomes. The funding is designed to accelerate product development and expand out across consumer goods, pharmaceutical, and manufacturing sectors in the US and Europe.
Posted by: Marc Hardwick at 08:49
Tags:
funding
manufacturing
supply chain