Startup Verusen raises $25M to bring AI-powered smarts to supply chain management

Artificial intelligence-powered supply chain management software firm Verusen said today it has closed on a $25 million round of funding as it looks to capture a growing opportunity in the “direct materials” market.

Today’s Series B round for Verusen, formally known as Autit Inc., was led by Scale Venture Partners with participation from a host of existing investors, including Glasswing Ventures, Flyover Capital, Zetta Venture Partners, Forte Ventures, BMW i Ventures, and Kubera VC. The new funding comes just a year after Verusen closed on its $8 million Series A round.

Verusen has built a supply chain management platform that relies on AI, deep learning, data harmonization and decision support to help companies in multiple industries make supply chains more resilient and cut the risk of running short. The company reckons its AI-driven software is disrupting traditional supply chain models by giving organizations access to unique data it captures from systems and human knowledge. At the same time, its platform learns continually to help companies make better decisions to ensure their supply chain avoids disruption.

Most organizations find supply chain operations to be a delicate balancing act. They don’t want to run out of essential components, but at the same time, they want to avoid having too many in stock. This is where Verusen says its AI comes in handy, helping companies optimize their supply chains based on predicted demand.

Verusen founder and Chief Executive Paul Noble said many organizations’ supply chains are in chaos because of data and organizational silos that have built up over decades.

“Our customers, partners, and investors are excited about the optimization and risk mitigation outcomes we deliver – both in time and costs — that accelerates trust in capabilities when it comes to building adaptable and resilient supply networks,” Noble said.

Verusen believes it has an opportunity to capture a big slice of a growing market for supply chain management solutions in the direct materials space, which covers areas such as the components/assemblies and raw materials/ingredients segments. The company cites data from Gartner Inc. showing that at least half of all supply chain organizations will invest in AI-powered applications to support their operations by 2024.

That rapid rate of adoption has been driven by global supply chain shortages resulting from the COVID-19 pandemic. Organizations are looking for tools to help them make more informed decisions faster so they can understand what’s happening in their business now and in the future.

To emphasize that point, Verusen rolled out one of its most prominent customers, the U.S. utilities firm Southern Co. “Since partnering with Verusen, we have gained much greater control and transparency of our materials across the different business units and geographies we operate in,” said Johnny Howze, vice president of supply chain management at Southern. “Verusen’s platform has helped accelerate our ‘One Supply Chain’ initiative and is the most sustainable solution we have found in the market, helping reduce working capital, mitigate risks, and drive resiliency.”

Those sentiments are likely shared by other customers too, for Verusen claims it has seen 10-times growth in the past year, off an undisclosed base, while delivering average working capital savings of 15% to 20% to its Fortune 500 customers.

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