Procurement collaboration enabler SourceDay has closed a $31.5 million series C led by Norwest Venture Partners with continued participation from existing investors including ATX Ventures, Baird Capital, Draper Associates, Ring Ventures and Silverton Partners to continue its efforts in linking global manufacturers, distributors and suppliers.
According to the Austin, Texas-based company, the average purchase order (PO) has a 52% chance of changing before it is delivered by the vendor. In order to keep all suppliers and vendors aware of these changes, SourceDay has created a single platform, integrated into an enterprise resource planning system, that allows full transparency of PO, RFP and accounts payable information.
Since 2019, SourceDay has managed over 7.3 million PO changes for manufacturers, suppliers and distributors across the globe, including Rocore, Bennington, The Napoleon Co. and ProMach. Due to a year of supply chain challenges, SourceDay’s customer count in 2021 grew to more than 12,000 global manufacturers, suppliers and distributors that now use its collaboration solution to process more than $124 billion in spend.
“Maintaining healthy supply chain performance is more important today than ever. Our emphasis on streamlining a company’s first mile enables teams to increase on-time deliveries, eliminate pricing discrepancies with suppliers, minimize inventory issues and drive predictability with last-mile receiving. This investment will have a tremendous impact on our services and digital platform as we embark on another year of record growth and creating resilient supply chains for our customers,” said SourceDay co-founder and CEO Tom Kieley.
|Funding amount||$31.5 million|
|Funding round||Series C|
|Lead investor||Norwest Venture Partners|
|Secondary investors||ATX Ventures, Baird Capital, Draper Associates, Ring Ventures and Silverton Partners|
|Business goals for the round||Add to sales, marketing, operations and customer success teams. Double product and engineering teams for expansion on current offerings|
|Total funding||$54.8 million*|
Sean Jacobsohn, a partner at Norwest, announced he will be joining the company’s board of directors as part of the latest funding round. “The SourceDay team have impressed us with their deep domain experience and ability to scale the business at a time when supply chain performance software couldn’t be more critical,” he said.
“SourceDay’s innovative solution improves supply chain procurement collaboration, drives real-time visibility to purchase order changes and enables on-time delivery. We are excited to be partnering with SourceDay as they continue their journey to improve direct spend management.”
With its new capital, the company plans to accelerate its growth, adding to its sales, marketing, operations and customer success teams, including doubling its product and engineering teams to create more value-added tools.