Global procurement startup CADDi locked up an $89 million Series C even as the supply chain management sector has seen a significant decline in funding.
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The new round was co-led by existing investors including Globis Capital Partners, DCM, Global Brain, World Innovation Lab, JAFCO Group and Minerva Growth Partners with new investors also participating. Founded in 2017, CADDi has now raised $164 million, per the company.
The Tokyo-based firm operates a business-to-business marketplace for the manufacturing industry that allows companies to manage quality, cost and delivery within its supply chain infrastructure.
The global supply chain company has ambitious goals. In a release, CADDi said the new cash will help it generate $10 billion in revenue by 2030. It also expects its U.S. office to expand to 100 employees within a year.
CADDi already has 590 employees globally, and has recently established a U.S. division and Mexico supplier operations.
Slumping supply chain
Supply chain management startups were the talk of the VC world after the pandemic rankled many industries’ ability to move materials and goods.
While the supply chain issues remain even as the pandemic has lessened — especially as labor shortages have persisted and geopolitical tensions have affected importing — venture dollars to the industry have slowed.
In 2021, startups in the supply chain management space raised a record $13.5 billion, per Crunchbase data. Last year, that number fell, but only slightly to $11.4 billion.
Through more than half of this year, however, venture dollars have plummeted.
Supply chain startups have received only $1.4 billion in funding so far this calendar year. That pace would mean a drop of more than 75% in funding to the space.
While a drop in VC dollars this year is common in nearly all industries — AI excluded of course — such a substantial fall seems to indicate the supply chain is not a top VC concern.
Clarification: This story has changed since its original publication to correct a headline error.
Illustration: Dom Guzman
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