Texas-based SourceDay Raises $12.5 Million in Series B Round of Financing

By: Retail CIO Outlook | Tuesday, April 14, 2020

Fremont, CA: SourceDay, an Austin, TX-based vendor collaboration engine of the direct spend industry, has raised $12.5 million in Series B round of financing. The aforementioned round was led by Baird Capital with participation from existing investors ATX Ventures, Silverton Partners, and Draper Associates. The funding comes at a time when manufacturers and distributors started overly depending on supply chain software and innovation, as they are faced with the impacts of COVID-19. As part of the deal, Joanna Arras, Principal at Baird Capital, will take a seat on SourceDay's Board of Directors.

"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. "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."

More than 6,000 global manufacturers, distributors, and suppliers use SourceDay, with many of them currently relying on the SaaS solution to best manage chaotic supply chains that are affected by COVID-19 pandemic. It is expected that the proceeds from the round will enhance SourceDay's ability to help its customers tackle supply chain risks as the pandemic continues to play out and prepare for when the eventual rebound hits.

SourceDay also intends to utilize the newly raised capital to invest in its product and go-to-market strategy. Product enhancements will include next-gen collaboration tools and reporting solutions that are bettered by predictive analytics and machine learning. The company also thinks of expanding its ecosystem of complementary SaaS solution providers and distribution partners.

"The COVID-19 pandemic is exposing the ways that outdated supply chain practices make manufacturers vulnerable," said Tom Kieley, CEO, SourceDay. "I'm excited to add Baird Capital to our team of investors. Baird's experience with leading SaaS companies and its relationships across the manufacturing sector will help SourceDay achieve our mission to make companies less vulnerable to current supply chain disruptions and all kinds of shifts in demand."

2019 was a record-setting year for SourceDay with the addition of thousands of new platform users, bringing the all-time total direct spend processed in SourceDay to $66 billion. During the same period, SourceDay also doubled the size of its team to over 50 employees, including the appointment of several experienced professionals to its leadership team.