LONDON, July 22, 2025 /PRNewswire/ -- Magentic, the AI Agent Platform that hunts and delivers savings across global manufacturing supply chains, today announced a $5.5 million funding round led by Sequoia Capital.
The fundraise, with participation from The Westly Group, First Momentum Ventures, and angel investors from SAP, Airbus, McKinsey & Company, Hugging Face, Ironclad, and Rosberg Ventures, will accelerate the team's growth.
"Supply chains are the hidden engines of our world, responsible for every phone, medicine, and plane in our lives," said Robin Van Aeken, Magentic's co-founder and CEO. "Procurement teams are at breaking point, spending hours navigating unstructured information, ever more complex demands, and now global conflict and tariffs."
According to McKinsey & Company, 90% of Chief Procurement Officers (CPOs) identify supplier compliance value "leaks" as critical business issues, with an average waste of 2% of total spend; ~$40M on a $2B spend base. One Magentic partner found previously undetected, P&L-impacting errors in 1 in 4 of its procurement documents.
Magentic deploys off-the-shelf, procurement and supply chain domain-specific AI teammates into operations. These AI agents are designed to hunt down, prioritize, and deliver hard savings, even in messy, unstructured environments where master data is incomplete or inconsistent. An example is a $30B manufacturer that saved 4% on its machinery spare parts procurement and is now rolling out Magentic's AI teammates to additional spend categories.
Odhran O'Donoghue, Magentic co-founder and CTO, said "For the first time, we have the technology to understand all our data across previously incompatible systems. At Magentic, we're motivated by the question: how can complex companies deploy trustworthy, reliable systems capable of following company playbooks to improve outcomes for their suppliers and their customers."
Magentic was founded by Robin Van Aeken who led teams at McKinsey & Company for global manufacturers and Odhran O'Donoghue who holds a PhD in Machine Learning from the University of Oxford and led advanced AI projects at OpenAI, NASA, and the Crick Institute. Magentic combines a world-class AI engineering team with procurement expertise.
Sequoia Capital Partner Julien Bek said: "Today, the best AI companies are selling outcomes not seats. In the old world, SaaS sold the promise of ROI. In the new world, AI actually delivers it. That's why we're proud to partner with Robin, Odhran, and the team at Magentic - their AI 'Mages' work seamlessly alongside procurement and supply chain teams to drive immediate P&L gains and we can't wait to see the impact they deliver as they continue to build."
Magentic's customers span consumer packaged goods, pharmaceutical, and advanced manufacturing sectors across the US and Europe. Magentic is deploying new AI teammates to prepare and defend against supplier tariff claims, find more opportunities for savings, and operate "end-to-end", always with humans in the loop.
Magentic aims to help its customers achieve automated operations, with human strategic thinking and relationships at the center.
To book a demo, please visit Magentic's website or find Magentic on LinkedIn
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