SourceDay Closes $31.5 Million Series C Funding Following Record-Breaking Year of Customer Growth
Newly backed by Norwest Venture Partners, SourceDay continues momentum with investments in product development and go-to-market
SourceDay, a leading supply chain procurement collaboration engine for direct spend materials and one of Austin’s fastest-growing companies, announced it closed a $31.5 million Series C round of funding. The round, led by Norwest Venture Partners with participation from existing investors ATX Ventures, Baird Capital, Draper Associates, Ring Ventures and Silverton Partners, comes at a critical time for manufacturers, distributors, consumer packaged goods brands and retailers as they are challenged with continued supply chain disruptions and first-mile issues accelerated by the pandemic.
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“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.”
More than 12,000 global manufacturers, distributors and suppliers use SourceDay, with many currently relying on the SaaS solution to manage purchase order changes and supplier collaboration. SourceDay broke records in 2021 with the addition of thousands of new platform users. To date, SourceDay has processed more than $124 billion in direct spend for its global customers. The new financing will enhance SourceDay’s ability to help its customers mitigate supply chain risk as the pandemic continues to impact suppliers.
“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. “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.”
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SourceDay will use its Series C funds to accelerate its recruiting efforts, reinforce the company’s sales, channel and marketing engines, and maintain its continued investment in operations and customer success from 2021. The company plans to double its product and engineering teams and bring on a product leader to its executive team.
In addition to leading this round, Norwest partner Sean Jacobsohn will take a seat on SourceDay’s board of directors.
“Tom, Clint and 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,” said Sean Jacobsohn, Partner at Norwest. “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.”