Today we are thrilled to announce that Fairmarkit has raised a $11M Series A led by Insight Partners! The investment will dramatically accelerate our team’s mission of providing more automation to the procurement industry.
We started Fairmarkit in 2017 with the goal of becoming the premier solution for tail spend management (TSM). Tail spend is the nonstrategic, non-complex spend that accounts for over 20% of a company’s overall budget, but a disproportionately large percentage of its total transaction volume and vendor base. More importantly, managing tail spend is an archaically manual and time-consuming area for a procurement department. Over the last two years, we’ve partnered with dozens of large enterprises including ServiceNow and Univision Communications to leverage the power of machine learning to optimize thousands of transactions. These efforts have resulted in over 15% cost savings, increased visibility through structured data, and aligning a team's most valuable resources, its people, towards strategic initiatives.
Looking into 2020, we are focused on expanding our partnerships with customers, growing into international markets, improving our analytics and machine learning capabilities, and further automating the enterprise purchase process by facilitating payments. Additionally, we will continue to expand our strategic partnerships with ServiceNow and Oracle, which provide clear value to our joint customers. Moving forward, we aim to establish similar relationships with key procurement solutions so we can deliver value for our procurement customers, regardless of their current ERP or P2P solution.
We will also bolster capabilities for our vendor partners. We will expand vendor-facing development and support with several projects, including a seamless vendor onboarding experience and the ability to create digital catalogs. Our goal is to create a robust and accessible B2B marketplace that streamlines the bidding, awarding, and payment processes for both buyers and suppliers.
With our enterprise and vendor-facing platform, we are automating the non-strategic purchase process while creating a key marketplace for B2B purchases. We believe that procurement teams should focus their valuable time and skills on challenging, complex sourcing initiatives and let technology handle the rest.
To deliver on this mission, we need to build a strong, balanced team that embodies our mission and core values. This is why we selected Thomas Krane and Insight Partners to join our family. Starting with our initial conversations, they saw the opportunity, understood the mission, and extended a plethora of resources to help drive the entire Fairmarkit community forward. Additionally, we will be adding Thomas Krane and Co-founder and COO Tarek Alaruri to the Board of Directors.
Although we have scaled growth 400%+ year-over-year, developed a strong team, and been recognized with awards by organizations such as IDC, Spend Matters, and CPOStrategy, we are still at the very early stages of Fairmarkit’s journey. If you are hungry to take on a new challenge to disrupt a trillion dollar market, we are hiring for key roles across every area of our business.
Most importantly, we are extremely grateful for the trust, insight, and collaboration our customers have shown us. We are excited to grow this community with those eager to drive transformation within procurement. Today, we are also pleased to announce the establishment of our customer advisory board, comprised of:
This collaborative initiative ensures we continue putting our customers first and adapting to the evolving needs of procurement departments. None of this success would be possible without our customers. We appreciate your continued support and partnership as we continue this journey together.
CEO & Co-founder, Fairmarkit