Silo, a supply chain startup, has raised $32 million in a Series C funding round led by Koch Disruptive Technologies. The round also saw participation from Andreessen Horowitz, Haystack Capital, Tribe Capital, Collate Capital, and Moore Capital. This latest investment brings Silo’s total funding to $272 million.
Founded by Ashton Braun, Silo aims to solve inefficiencies in the food and agricultural supply chains. Braun observed these inefficiencies during his time as a commodities trader in Singapore, where he saw businesses struggle with communication challenges and the asymmetry between supply and demand. According to Braun, removing friction and risk between businesses is crucial for the growth of the supply chain.
Silo’s platform structures and automates communications data from food and agricultural businesses. The company has expanded its services to include payments products for accounts payable and accounts receivable automation, inventory management, ledger accounting, and financing. Silo uses artificial intelligence (AI) to underwrite, manage product taxonomy, extract documents, and detect fraud in the perishable supply chain. The company’s AI-forward approach has been successful, with hundreds of customers and revenue growth of over 100% since December 2022, reaching tens of millions of dollars.
Despite the cooling venture capital funding environment for supply chain startups, investors have shown confidence in Silo’s strategy. The funds from the Series C round will be used for product development and research and development in logistics and workflow automation. Silo also plans to launch Cash Advance, a loan program for food supply chain businesses, in partnership with First Citizens Bank. This program aims to help small and medium-sized businesses within the perishable supply chain scale their operations and compete with larger players in the industry.
Silo currently has an 84-person team, and Ashton Braun expects it to grow to around 100 employees by the end of the year. The company is based in San Francisco and aims to bring its holistic solutions to more businesses within the perishable food space.
Overall, Silo’s platform and financing programs provide solutions to the challenges faced by food supply chain companies, aiming to streamline operations and enable growth in a rapidly consolidating industry. With the continued development of its platform and the support of investors, Silo is set to make a significant impact in the supply chain sector.
