Austin-based SourceDay, which sells supply chain management software, said it raised $12.5 million in its latest round of financing.
The company developed software to manage the relationship between companies and the businesses they source raw materials from as part of their direct spending needs.
Baird Capital led the round with participation from existing investors including Silverton Partners, ATX Ventures and Draper Associates, the company said.
For companies dealing the supply chain shocks caused by the COVID-19 pandemic, supply chain management tools are more important than ever, according to the company.
“As businesses face unprecedented times, they are seeking faster answers to bigger challenges,” said Joanna Arras, Principal at Baird Capital and SourceDay’s newest board member, said in a statement. “More than ever, companies need resilient and agile supply chains. Poor supply chain visibility and inefficient collaboration will be crippling during this time of rapidly shifting demand. Baird Capital is proud to invest in SourceDay to help companies face these challenges head-on.”
The company counts over 6,000 manufacturers, distributors and suppliers among its customer base and said it would use the financing to further develop tools that can aid customers in their mitigation of supply chain risks.
“The COVID-19 pandemic is exposing the ways that outdated supply chain practices make manufacturers vulnerable,” said Tom Kieley, CEO, SourceDay, in a statement.
SourceDay is coming off a record-breaking year that saw the company add thousands of new customers and bringing the total amount of spending processed on its platform to over $66 billion. It now counts over 50 employees on staff since its launch in 2013.