Tacto, a German-based AI operating system designed for resilient supply chains, has successfully raised €50 million in a recent funding round led by Sequoia Capital and Index Ventures. The funding round also saw participation from existing investors Visionaries Club, Cherry Ventures, and UVC Partners.

The average mid-sized industrial organization allocates 50 percent of its revenue to procurement. Despite this significant investment, many still grapple with manual workflows and complex spreadsheets in managing numerous suppliers and a vast array of essential production articles.

Tacto addresses this challenge by providing a central operating system designed to future-proof supply chains for mid-sized industrials. The AI-powered software streamlines procurement workflows, ensuring compliance with sustainability standards, and facilitating efficient material sourcing. It automates tasks related to regulatory compliance with various Supply Chain Acts, reducing the need for additional personnel.

Notably, Tacto’s AI capabilities extend to identifying potential cost savings of up to 10 percent in procurement spend. This is achieved by analyzing volatile price developments in key cost drivers, such as raw materials and energy prices, across the entire article portfolio and comparing them to actual prices paid.

André Petry, CEO & Co-Founder of Tacto, emphasized the importance of the technological solution in the face of supply chain disruptions and bureaucratic challenges that pose threats to European mid-sized industrial companies. The funding will be utilized to accelerate product development and invest significantly in AI, enhancing the platform’s capabilities.

The funding round underscores the strength of Tacto’s product and its commitment to helping customers navigate the increasing complexity of supply chains, making them more digital, efficient, and sustainable.

Luciana Lixandru, Partner at Sequoia Capital, highlighted the strategic importance of suppliers, especially in times when global supply chains are under unprecedented pressure. Carlos Gonzalez-Cadenas, Partner at Index Ventures, commended Tacto’s approach in alleviating the challenges associated with the rising complexity of modern industrial productions through smart AI applications.