How Much Did Fairmarkit Raise? Funding & Key Investors

Fairmarkit has successfully raised $35.6 million in a Series C funding round led by OMERS Growth Equity. The platform offers autonomous sourcing solutions designed to streamline procurement processes through automation and AI.

Keep reading to explore the intricacies of Fairmarkit's fundraising journey and the investors backing this innovative platform.

What Is Fairmarkit?

Fairmarkit, founded in 2017, is headquartered in Boston, Massachusetts. The company was established by Kevin Frechette, Tarek Alaruri, and Victor Kushch. With a team of over 100 employees, Fairmarkit specializes in autonomous sourcing solutions that leverage AI to streamline procurement processes.

How Much Funding Has Fairmarkit Raised?

1. Pre-Seed Round
   • Amount Raised: $889K
   • Date: May 2018
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To develop the initial version of the platform and validate the market need.
2. Seed Round
   • Amount Raised: Not publicly disclosed
   • Date: January 2019
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To expand the team and enhance the platform's capabilities.
3. Series A
   • Amount Raised: $11M
   • Date: October 2019
   • Lead Investors: Insight Partners
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To scale the business and increase market penetration.
4. Series B
   • Amount Raised: $30M
   • Date: December 2020
   • Lead Investors: Insight Partners, Notable Capital
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To accelerate product development and expand customer base.
5. Venture Round
   • Amount Raised: Not publicly disclosed
   • Date: April 2021
   • Lead Investors: Not publicly disclosed
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To support ongoing growth and operational scaling.
6. Series C
   • Amount Raised: $35.6M
   • Date: September 2022
   • Lead Investors: OMERS Growth Equity
   • Valuation at Round: Not publicly disclosed
   • Motivation Behind the Round: To invest in strategic hiring, technology partnerships, and further developing its product offerings.

Total Amount Raised: $77.5M. Current Valuation: Not publicly disclosed.

Key Investors

• OMERS Growth Equity
  • Details: OMERS Growth Equity is a division of OMERS, one of Canada's largest pension funds. They focus on growth equity investments in high-growth companies.
  • Investment Focus Areas: High-growth companies, scaling operations, acquisitions, product line expansion, new market entry.
  • Notable Investments: Shopify, TouchBistro, Coveo.
• GGV Capital
  • Details: GGV Capital is a global venture capital firm that invests in local founders. They focus on seed-to-growth stage investments across various sectors.
  • Investment Focus Areas: Technology companies, consumer, enterprise, frontier tech.
  • Notable Investments: Alibaba, Slack, Square.
• Insight Partners
  • Details: Insight Partners is a global private equity and venture capital firm investing in high-growth technology and software companies. They have a strong track record of scaling businesses.
  • Investment Focus Areas: High-growth technology, software companies.
  • Notable Investments: Twitter, Shopify, DocuSign.
• HighlandX
  • Details: HighlandX is a venture capital firm that invests in early to growth-stage technology companies. They support innovative startups with potential for significant impact.
  • Investment Focus Areas: Early-stage technology companies.
  • Notable Investments: Rent the Runway, Harry's, Malwarebytes.
• ServiceNow
  • Details: ServiceNow is a cloud-based platform and solutions provider that helps digitize and unify organizations for better workflow and operational efficiency. They made a strategic investment in Fairmarkit.
  • Investment Focus Areas: Digital workflow automation, enterprise software solutions.
  • Notable Investments: Element AI, Loom Systems.

What's Next for Fairmarkit?

Fairmarkit stands at the cusp of significant growth opportunities. With the recent $35.6 million Series C funding, the company is poised to expand its AI-enabled procurement platform, optimize sourcing events, and add intelligence to payment processes. The projected $3 trillion US B2B e-commerce spend by 2027 and a 14% CAGR in enterprise e-sourcing spending highlight the vast market potential.

Future fundraising seems likely as Fairmarkit continues to attract strategic investments, particularly from partners like ServiceNow. This financial backing will support further scaling, strategic hiring, and technology partnerships. However, challenges such as managing rapid growth, integrating with various ERP systems, and maintaining a competitive edge in a dynamic market remain. Addressing these effectively will be crucial for sustained success.

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