By ET Bureau - June 15, 2022 4 Mins Read
Arkestro, the leading Predictive Procurement Orchestration platform, today announced they have closed a $26 million Series A funding round led by NEA, Construct, Koch Disruptive Technologies (KDT) and Four More Capital, a division of Henry Crown & Company, and with participation from existing seed vendors Cervin, Correlation, El Cap, Forum, Illuminate and Tenacity. This fresh funding will be used to accelerate growth, enabling Arkestro to further help customers amplify the impact of procurement’s influence across their enterprises using behavioral science, game theory and predictive machine learning models applied at a massive scale.
“Our customers’ success is now creating a movement among investors that truly understand the transformative value of predictive machine learning to drive continuous improvement in any procurement, sourcing and purchasing cycle. Securing this round was based on our customers’ ability to influence 100% of spend including direct spend in fast-moving, non-recurring, complex and market-constrained supply categories without requiring any user adoption or heavy integration,” says Edmund Zagorin, CEO, Arkestro. “Our leadership sees this investment as additional validation for Predictive Procurement Orchestration as an emerging market category, and especially for the ‘savings-on-autopilot’ approach.”
“Arkestro’s embedded platform unlocks clear business value by empowering enterprises to scale their most efficient purchasing decisions, resulting in accelerated savings and improved supplier experience,” says Jeff Immelt, Venture Partner, NEA. “Arkestro is composed of a strong and diversified team of technical and GTM leaders with a differentiated, AI-powered solution that meets growing market needs for one-stop procurement and supply chain optimization.”
“For decades, NEA has invested in companies addressing a broad spectrum of enterprise challenges,” adds Scott Sandell, Managing General Partner, NEA. “We’ve worked with industry-transforming companies such as Salesforce, Workday, and Cloudflare. Now, we are thrilled to partner with Arkestro, and believe the company has immense potential to impact procurement for businesses at global scale.”
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“We see significant potential for Arkestro and its technology platform in the supply chain; notably in terms of the value it will bring to the procurement market to help enterprises realize increased efficiencies and savings in their operations,” says Byron Knight, COO and Managing Director at Koch Disruptive Technologies. “KDT and Koch Industries have numerous investments and operations across the supply chain, and we’re excited to help Arkestro explore the potential applicability of its solutions.”
Arkestro, which is targeted at the C-suite and trusted by CFOs and COOs, is used by leading brands including Bel Brands, Box and Holman Enterprises, helping to boost both savings and supply chain performance – including quality, lead time and on time in full (OTIF) metrics. It offers machine learning-powered predictive pricing, which enables buying teams to better negotiate with and manage more suppliers. In this way, Arkestro helps its customers better manage their supply chains and increase supply chain performance and resiliency to market shocks and inflationary cost pressures. Arkestro also provides external validation and improved data quality for every single purchase order, and unifies data for real-time visibility across suppliers, spend and contract terms, including diversity, environmental, social and governance (ESG) analysis.
“In the procurement world, time is of the essence. Arkestro has really helped to kickstart our digital transformation journey by giving us our time back through leveraging data and AI. These innovations make us faster, and the faster we get, the more we can accomplish, and the more successful we can be,” says Jean-Michel dos Remedios, Head of Procurement, Sourcing and Supplier Development, Bel Brands USA.
Box, one of the most widely used enterprise technologies in the world for secure content management, workflow and collaboration, has used Arkestro to create greater transparency across their entire supplier ecosystem and also provide actionable KPI dashboards to leadership. As a result, Box has a level of supplier equity and diversity that is well above market average, all while improving the overall control of their supply chain. “With Arkestro, we are able to evaluate and advocate for suppliers with fine-grained diversity data – giving us the best opportunity to not only expand our pool of suppliers but to do so with inclusion and equality in mind,” says Linda Chuan, Chief Procurement Officer at Box.
The platform covers e entire enterprise technology space- including emerging technologies like RPA, AI, cloud, automation, and the entire gamut of digital transformation tools, strategies and management decisions.
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