Supply Chain Startup SourceDay Raises $31.5 Million in Series C Funding

Logistics network icons in a warehouse setting.

SourceDay, a supply chain management startup company, announced it has raised $31.5 million in a Series C funding round led by Norwest Venture Partners. ATX Ventures, Baird Capital, Draper Associates, Ring Ventures, and Silverton Partners also took part in the business funding round.

Supply Chain Improvements ‘More Important Than Ever’

The Series C funding round comes amid a challenging period for manufacturers, distributors, and retailers who continue to grapple with supply chain-related and first-mile difficulties.

SourceDay serves more than 12,000 manufacturers, distributors, and vendors around the globe who utilize the startup company’s software as a service (SaaS) product to improve the management of buy order changes. The startup company has handled over $124 billion in direct spending for its clients and reported a record-high addition of new platform users last year.

The supply chain startup company plans to use the raised business funding to continue to develop its platform and provide a better experience for customers who are fighting to reduce risks. SourceDay will also invest a part of the funding to increase headcount, drive sales, and maintain its growth momentum from 2021.

SourceDay expects to double the number of its offerings and engineers. Additionally, the company plans to hire a new product leader for its team of executives.

“Procurement teams can expect more than half of their purchase orders to change—a level of unpredictability that can be detrimental to many organizations. Procurement teams—and their suppliers—need user-friendly solutions in response to the supply chain’s erratic nature,” said Tom Kieley, CEO and co-founder of SourceDay.

Kieley added that maintaining the performance of the supply chain at a high level is “more important than ever.” The startup company is focusing on helping clients streamline the first mile to boost on-time deliveries, reduce price discrepancies, and mitigate inventory issues.

“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,” Kieley noted.

The raised business capital is expected to provide a substantial boost as the company continues to develop its platform to create a robust supply chain for its customers, Kieley added.

In addition to the Series C funding, Sean Jacobsohn, a partner at Norwest Venture Partners, will be joining SourceDay’s board of directors. The VC business is managing over $12.5 billion in assets and has backed over 650 startup companies so far. Norwest Venture Partners focuses on providing business funding to early to late-stage startup companies that mostly operate in the consumer, enterprise, and healthcare sectors.

Jacobsohn praised SourceDay’s innovative product, which notably reinforces the supply chain procurement collaboration and helps improve real-time visibility of purchase order changes.

Jacobsohn’s VC business said it is excited to team up with SourceDay after the startup company has shown an impressive deep domain experience and ability to scale operations. All this was possible in the midst of a critical period and robust demand for high-performance supply chain management software, Jacobsohn added.

The startup company has more than 88 employees and has recently appointed supply chain expert Sarah Scudder as the new Chief Marketing Officer (CMO).

Summary

Supply chain management startup company SourceDay announced it raised $31.5 million in a Series C funding round from Norwest Venture Partners and other investors.

Adriaan Brits

An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.

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