Austin-based collaboration engine, SourceDay has recently announced the closing of a $12.5 million Series B funding round. The investment comes along the heels of increasing dependency of distributors and manufacturers on innovation and supply chain software, amid burgeoning COVID-19 concerns. The funding round was led by Baird Capital, along with participation from current investors ATX Ventures, Draper Associates and Silverton Partners. Baird Capital will also assume a seat on the Board of Directors.
Baird Capital Principal and the newest member on SourceDay’s Board of Directors, Joanna Arras has reportedly stated that what businesses need in the current unprecedented times are agile and robust supply chains. She further stated that Baird Capital’s investment in SourceDay is a way to help these companies achieve this and meet challenges head-on.
SourceDay is used by over 6000 distributors, manufacturers and suppliers. Of these, many presently rely on the Saas platform to manage disruptions caused by the COVID-19 crisis on supply chains. The Series B funding will reinforce SourceDay’s ability in aiding its customers reduce their supply chain risks and prepare for the eventual rebound once the pandemic recedes.
The company plans to use the funds from the round as an investment in its go-to-market and product strategy. Machine learning and predictive analytics will be used to enhance advanced reporting solutions and collaboration tools. Furthermore, the company is also planning an expansion of its complementary SaaS solution providers and distribution partners ecosystem.
SourceDay CEO, Tom Kiely also expressed his excitement at bringing Baird Capital onboard their team of investors. He stated that SourceDay will benefit greatly from Baird’s experience with major SaaS companies and relationships across the manufacturing industry, enabling them to accomplish their target of mitigating the vulnerabilities of companies to various demand shifts and supply chain disruptions.
SourceDay recorded thousand of new users on their platform in 2019, making it a record-breaking year for the company and bringing its total direct spend to $66 billion. The company also doubled its team size to over 50 employees over the same period, adding numerous experienced staff to its leadership team.