Nearly a year and a half after raising $3.5 million to meet customer demand, Austin-based SourceDay has secured another $6.5 million in a new Series A to grow its team.
SourceDay helps suppliers and buyers from the manufacturing industry ditch manual purchase orders by offering a cloud-based, automated purchasing platform. Its software directly integrates with enterprise resource planning solutions, making for easy product adoption.
Tom Kieley, SourceDay CEO and co-founder, said manual procurement processes often lead to human errors, poor customer experiences and a lack of collaboration between buyers and suppliers.
“The result is costly inefficiencies,” said Kieley. “We solve for the inefficiencies, challenges and errors that come with manual procurement processes by introducing digitization and automation to direct procurement, purchase order management and supplier collaboration.”
We solve for the inefficiencies, challenges and errors that come with manual procurement processes.”
According to SourceDay’s website, its solution saves buyers over 10 hours a week on average by automating the process. It also reportedly reduces data errors by 90 percent and product price variance by 50 percent.
“In addition, we’re the only platform of its kind that fully supports and trains customers and their suppliers on a single solution,” said Kieley.
The funding comes a month after SourceDay earned a spot on Red Herring’s 2018 Top 100 Global for leading in innovation in the manufacturing and distribution industries. It also follows a big year of growth for the team and its partners.
Local VCs Silverton Partners and ATX Seed Ventures led the round alongside California-based Draper Associates. December’s funding brings SourceDay’s total raised since its 2013 inception to $10.5 million.
“We absolutely believe having a local firm investing in our continued growth is strategic to building a great team and gives us access to a larger network within our community for continued success,” said Kieley.
SourceDay will use the fresh capital to bring on engineers, data scientists, client success, marketing and sales professionals. Kieley said they plan to add more than 25 people by the end of next year.
“We are excited to collaborate with and support [SourceDay] as they work to build a great company in an exciting category,” said Tim Draper, founder and managing partner with Draper Associates, in a statement. “We believe manufacturers will rapidly expand spending into this niche when they see the opportunities to maximize direct spend management provided by the application.”