Fairmarkit Secures $35.6M in Series C Funding to Help More Companies Optimize “Final Spend”

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BOSTON–(BUSINESS WIRE)–Fairmarkit, the automated procurement platform transforming the procurement of goods and services for businesses, today announced a Series C investment of $35.6 million, bringing its total funding to date to $78 million . The tour was led by OMERS Growth Stocks with the participation of investors GGV Capital, Insight Partners, HighlandXas well as a new strategic investment of ServiceNow. The new capital will further fuel Fairmarkit’s rapid growth through strategic hiring, increased technology partnerships and product development. The company optimizes the platform for all sourcing events and plans to add the same level of intelligence to payments, bringing customers one step closer to fully self-sufficient sourcing. Additionally, Fairmarkit was recently added to 2022 Inc.’s 5,000 fastest growing private companies list, ranked 159th.

Fairmarkit is an AI-powered procurement platform designed for sourcing low-cost, non-strategic purchases, or “tail spends”, more efficiently. An organization’s residual spend can be 80% of purchases, 80% of vendors, and 20% of budget. With its SaaS platform, Fairmarkit centralizes supplier data and leverages its machine-learning recommendation engine to match business needs with relevant suppliers who submit competitive quotes. This reduces traditional manual efforts by providing templates and automating the steps for RFPs, RFPs and Reverse Auctions, eliminating the need for buying desks. Its platform also integrates with leading ERP systems like Ariba, Coupa, Oracle, SAP, and ServiceNow.

“Our system has been specifically designed to focus on high-volume purchases that can require long buying cycles and which are largely unmanaged and ignored by corporate procurement teams, who have traditionally relied on clunky, manual enterprise technology,” said Kevin Frechette, co-founder and CEO of Fairmarkit. “We realize that the current economic climate has forced our customers to do more with less, as every element of the line is examined to reduce costs and every opportunity to improve operational efficiency is sought. This investment will help accelerate the impact of our platform on our clients’ bottom line. »

According Forest, B2B e-commerce spending in the United States will reach $3 trillion by 2027. Businesses are increasingly relying on automation for better visibility and faster turnaround times for purchases rather than to keep adding people. A 2022 Gartner report indicates that more than half of supply chain organizations will use machine learning to improve decision-making by 2026 and business spending on e-procurement is expected to increase by 14% CAGR.

“Organizations are being forced to rethink global supply chains more than ever and find innovative solutions to complex sourcing challenges,” said Warda Shaheen, Director, OMERS Growth Equity and newly appointed Fairmarkit Board Observer. “Fairmarkit offers a solution that enables businesses to be more efficient and achieve disciplined spending, which is essential for long-term growth and survival. We are proud to lead the company’s Series C and excited to partner with Kevin Frechette and the Fairmarkit team for this next stage of growth.

Over the past year, spending by Fairmarkit customers has quadrupled on the platform, and they are on track to host over 200,000 competitive sourcing events this year. Additionally, Fairmarkit’s marketing partnerships with Accenture, Capgemini, Ernst & Young, Hackett Group and KPMG have contributed to this exponential growth.

Today, the company serves more than 50 companies, including BP, British Telecom, Cabot Corporation, Emirates Flight Catering, Vattenfall, Refinitiv and Snowflake. Fairmarkit customers have seen savings of over 10% on purchases and a reduction of over 60% in manual effort. To meet growing demand, the platform has added multiple languages ​​and scaled customer support features for continued ease of use on a global scale.

“Customers rely on ServiceNow as a sustainable platform for a rapidly changing world,” said Philip Kirk, senior vice president of business development at ServiceNow. “This investment is a natural extension of our commitment to transform sourcing and supplier operations across the company. As integration partners, ServiceNow and Fairmarkit are already helping to accelerate procurement request delivery times through the digitization and automation of self-service digital workflows. We will continue to innovate to help customers win.

Co-founded in 2017 by CEO Kevin Frechette, COO Tarek Alaruri and CTO Victor Kushch, Fairmarkit is headquartered in Boston, MA with offices in New York and Poland. Since its Series B investment in 2020, Fairmarkit has doubled its workforce to over 120 current employees globally. The company continues to expand its team and recruits for positions in all departments.

ABOUT FAIRMARKIT

Fairmarkit is an autonomous procurement platform that transforms the way enterprise procurement teams manage their back end spend and beyond. Its SaaS platform centralizes supplier data and leverages its machine learning recommendation engine to match business needs to relevant suppliers, saving time and money. Some of the world’s largest procurement services rely on Fairmarkit for their procurement processes, including: bp, British Telecom, Cabot Corporation and Refinitiv. The Boston-based company was named to the 2022 Inc. list of the 5,000 fastest-growing private companies, ranked No. 159 overall and No. 5 in Massachusetts. Learn more about www.fairmarkit.com.

ABOUT OMERS GROWTH EQUITY

OMERS Growth Equity invests in high-growth companies backed by exceptional teams. OMERS Growth Equity is a long-term investor, focused on supporting companies to seize all types of growth opportunities, including scaling operations, completing acquisitions, expanding product lines products or entering new markets. To learn more, visit: www.omersgrowthequity.comor follow us on Twitter Where LinkedIn.

ABOUT SERVICENOW

ServiceNow (NYSE: NOW) makes the world a better place for everyone. Our cloud-based platform and solutions help digitize and unify organizations so they can find smarter, faster, and more efficient ways to make work easier. Thus, employees and customers can be more connected, more innovative and more agile. And we can all create the future we imagine. The world works with ServiceNowTM. For more information visit: www.servicenow.com.

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