CADDi, a startup operating a B2B marketplace for the manufacturing industry, has secured $89 million in a Series C funding round. The latest investment brings the total capital raised by CADDi to $164 million and will enable the company to expand its business and assist equipment manufacturing players. Existing investors, including Globis Capital Partners, DCM Ventures, Global Brain, World Innovation Lab, JAFCO, and Minerva Growth Partners, participated in the funding round, along with four new investors such as SMBC Venture Capital and Mitsubishi UFJ Capital.
CADDi, founded in 2017 by Yushiro Kato and Aki Kobashi, offers two major solutions: CADDi Manufacturing and CADDi Drawer. CADDi Manufacturing is a parts procurement platform that helps mid-volume and high-mix-low volume production manufacturers. The platform streamlines the procurement process, aggregates orders, and finds similar materials, processes, and suitable delivery schedules, resulting in optimal prices and reduced procurement costs for customers. CADDi Drawer is an artificial intelligence-powered cloud service that manages drawing data, allowing manufacturers to improve quality, cost, and delivery (QCD) by saving time and costs associated with drawing creation.
The funding will be used to enhance CADDi Manufacturing and CADDi Drawer, expand the company’s workforce in the United States, and achieve its revenue goals of $10 billion from CADDi Manufacturing and $1 billion from CADDi Drawer by 2030. CADDi aims to address similar challenges in the procurement industry in the United States, such as labor shortages and disparate systems and standards, by leveraging its knowledge and technology developed in Japan. The company has recently opened an office in the United States and supplier operations in Mexico to serve its US-based clients, while also maintaining offices in Vietnam and Thailand to support its operations in Asia.
The COVID-19 pandemic has severely impacted the entire manufacturing supply chain, and the ongoing US-China tech battle has further intensified the challenges faced by the industry. According to a recent survey by the Association of Equipment Manufacturers, 98% of equipment manufacturing firms are still grappling with supply chain issues, with more than half experiencing worsening conditions due to labor shortage and limited access to intermediate components. CADDi’s marketplace for manufacturing parts aims to address these challenges and help equipment manufacturers navigate through the turbulent supply chain landscape.
By securing substantial funding and expanding its operations, CADDi is well-positioned to scale its B2B marketplace and provide valuable solutions to the manufacturing industry. As the sector strives to recover from the pandemic and overcome supply chain obstacles, CADDi’s offerings are expected to play a crucial role in facilitating smoother procurement processes, optimizing pricing, and improving overall efficiency for manufacturers worldwide.
