Summary:
CADDi raises $38 million in funding led by Atomico.
The funding boosts CADDi's valuation to $470 million.
Plans to double engineering staff from 150 to 300.
AI software helps manufacturers manage part duplication and optimize supply chains.
Targeting $1 billion in revenue by 2030.
CADDi's Latest Funding Boost
CADDi, a Japanese startup leveraging AI technology to enhance supply chain efficiency for global manufacturing firms, has successfully raised $38 million in funding led by Atomico, a venture capital firm based in the U.K. This funding round values CADDi at $470 million and marks a significant milestone, bringing its total funding since inception in 2017 to $202 million.
A Growing Demand for Efficiency
The recent funding follows an earlier $89 million Series C round announced in July 2023, with participation from notable investors like DCM Ventures and Globis Capital Partners. With its headquarters in Tokyo and Chicago, CADDi is poised to accelerate its U.S. expansion, aiming to double its engineering workforce from 150 to 300 employees.
Solving the Parts Dilemma
CADDi’s software addresses a common challenge faced by large manufacturers: the overabundance of similar parts from multiple suppliers. By analyzing technical drawings, CADDi identifies similar or identical components already in inventory, streamlining the search process for parts through keyword-based queries.
Benefits of CADDi's Solution
Manufacturers utilizing CADDi’s platform can:
- Eliminate component duplication
- Optimize supply chains, particularly for commonly used parts
- Reduce supplier counts, leading to cost savings and better pricing through bulk purchases
One automotive client reported a 60% reduction in different fastener SKUs after implementing CADDi’s software.
Client Success Stories
Noteworthy clients include Subaru, which stated that CADDi saved employees “hundreds of hours per month” in searching for technical drawings. Additionally, DENSO, another major auto parts manufacturer, highlighted how CADDi's technology helps train younger employees to source components more efficiently, mitigating reliance on veteran knowledge.
Future Aspirations
While specific revenue figures remain undisclosed, CADDi aims for $1 billion in revenue from its software platform by 2030. Originally founded as a marketplace for machinery components, CADDi transitioned to focus on its robust AI software, pivoting from a parts broker to a cloud-based solutions provider for manufacturers.
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