BOSTON–(BUSINESS WIRE)–Fairmarkit, the automated sourcing platform revolutionizing the procurement of products and services for businesses, today announced a $35.6 million Series C investment, bringing its total funding to date to $78 million. The round was led by OMERS Growth Equity with participation from investors GGV Capital, Insight Partners, HighlandX, as well as a new strategic investment from ServiceNow. The new capital will further fuel Fairmarkit’s rapid growth through strategic acquisitions, increased technology partnerships and product development. The company is optimizing the platform for all sourcing events and plans to add the same level of intelligence to payments, bringing customers closer to fully autonomous sourcing. In addition, Fairmarkit was recently added to the 2022 Inc. list. 5000 fastest growing private companies, ranked 159.
Fairmarkit is an AI-enabled procurement platform built for getting lower dollar, non-strategic purchases, or “tail spend,” more efficiently. Tail spending in an organization can reach 80% of purchases, account for 80% of suppliers and 20% of the budget. Using its SaaS platform, Fairmarkit memorizes supplier data and uses its machine learning recommendation engine to match business needs with relevant suppliers who submit competitive quotes. It reduces traditional manual efforts by offering templates and automating the steps of RFQs, RFPs, and Reverse Auctions, eliminating the need for buy desks. Its platform also integrates with leading ERP systems such as Ariba, Coupa, Oracle, SAP and ServiceNow.
“Our system is specifically built to focus on high-volume purchases that may require long purchase cycles and are largely unmanaged and overlooked by enterprise procurement teams, who traditionally rely on clunky enterprise technology and manual,” said Kevin Frechette, co-founder and CEO of Fairmarkit. “We realize that the current economic climate has placed stress on our customers to do more with less, as every line item is scrutinized for cost savings and every opportunity to drive operational efficiencies is pursued. . This investment will help accelerate the impact of our platform on our customers’ bottom lines.”
According to Forrester, US B2B e-commerce spending will reach $3 trillion by 2027. Companies increasingly rely on automation for better visibility and faster turnaround times for acquisitions compared to continuous adding people. A 2022 Gartner report states that more than half of supply chain organizations will use machine learning to augment decision-making by 2026 and that enterprise spending on e-sourcing is expected to grow at a 14% CAGR.
“Organizations are being forced to rethink global supply chains and find innovative solutions to complex procurement challenges today more than ever,” said Warda Shaheen, Director, OMERS Growth Equity and newly appointed Fairmarkit Board Observer. “Fairmarkit offers a solution that enables businesses to be more efficient and achieve disciplined spending, which is essential to long-term growth and survival. We are proud to lead the company’s Series C round and are excited to partner with Kevin Frechette and the Fairmarkit team in the next phase of growth.”
Over the past year, Fairmarkit customers’ spending on the platform has quadrupled, and they are on track to complete more than 200,000 competitive sourcing events this year. In addition, Fairmarkit’s go-to-market partnerships with Accenture, Capgemini, Ernst & Young, Hackett Group and KPMG have contributed to this exponential growth.
Today, the company serves more than 50 businesses, including BP, British Telecom, Cabot Corporation, Emirates Flight Catering, Vattenfall, Refinitiv, and Snowflake. Fairmarkit customers have experienced 10%+ savings in purchases and 60%+ reduction in manual efforts. To meet growing demand, the platform has added multiple languages and enhanced customer support functions for continued ease of use worldwide.
“Customers rely on ServiceNow as a robust platform for a rapidly changing world,” said Philip Kirk, Senior Vice President of Corporate Business Development at ServiceNow. “This investment is a natural extension of our commitment to transform procurement and supplier operations across the enterprise. As integration partners, ServiceNow and Fairmarkit already help accelerate delivery times for supply chain requests. sourcing through digitization and self-service digital workflow automation. We will continue to innovate to help customers win.”
Co-founded in 2017 by the CEO Kevin Frechette, COO Tarek Alaruri, and CTO Victor Kushch, Fairmarkit is headquartered in Boston, MA and has offices in New York and Poland. Since its Series B investment in 2020, Fairmarkit has doubled its workforce with more than 120 current employees worldwide. The company continues to expand its team and hires in all departments.
ABOUT FAIRMARKIT
Fairmarkit is an autonomous sourcing platform that transforms how enterprise procurement teams manage their tail spend and more.” Its SaaS platform centers on supplier data and uses its machine learning recommendation engine to match business needs with relevant suppliers, saving time and money. Some of the world’s largest purchasing departments rely on Fairmarkit for their sourcing processes, including: bp, British Telecom , Cabot Corporation, and Refinitiv. The Boston-based company was named to the 2022 Inc. 5000 list of fastest-growing private companies, ranked #159 overall and #5 in Massachusetts. Learn more at www.fairmarkit.com .
ABOUT OMERS GROWTH EQUITY
OMERS Growth Equity invests in high-growth companies backed by exceptional teams. OMERS Growth Equity is a long-term investor, dedicated to supporting companies to pursue all types of growth opportunities including scaling operations, making acquisitions, expanding product lines, or entering of new markets. To learn more, visit: www.omersgrowthequity.com, or follow us at Twitter or LinkedIn.
ABOUT THE SERVICE TODAY
ServiceNow (NYSE: NOW) makes the world better for everyone. Our cloud-based platform and solutions help digitize and unite organizations so they can find smarter, faster, more efficient ways to streamline workflow. So employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNowTM. For more information, visit: www.servicenow.com.