UPDATED 08:00 EDT / JUNE 12 2018

APPS

AI-based supply chain company LevaData raises $12M in funding round

Artificial intelligence-based supply chain system provider LevaData inc. is eyeing new markets after closing on a new $12 million round.

The Series B round, led by previous investor Tola Capital, brings its total funding to almost $20 million since 2014.

LevaData has built the Cognitive Sourcing Platform to help organizations in a range of industries, including high tech/electronics, automotive, industrial equipment, consumer products and medical devices, better manage their supply chains. The platform combines market intelligence with enterprises’ data and then applies “AI cognitive analytics” to help companies better identify cost savings and risks.

The Cognitive Sourcing Platform, designed for direct-sourcing teams, works by comparing costs from an enormous database of manufacturing parts it maintains. The company keeps this database up-to-date by applying the latest marketing intelligence, it says.

Key to the platform is the insights provided by its AI, which companies can leverage to negotiate with their suppliers. The AI system generates what LevaData calls “negotiation playbooks” that its customers can use to try to secure cheaper prices for the components and materials they need.

For example, LevaData’s algorithms might predict that the cost of a certain raw material is likely to decline in the future, so customers can leverage that knowledge in their negotiations with suppliers. LevaData’s AI algorithms also help customers to identify risks and opportunities based on metrics such as the supplier’s financial health, changes to benchmark costs and external factors such as foreign exchange rates and raw-material costs.

LevaData said it plans to use its new capital to target new vertical markets and also fund product development. “Our goal is to deliver $20 billion in verifiable value for our customers by 2022,” said LevaData Chief Executive Rajesh Kalidindi.

Image: Tumisu/Pixabay

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