The momentum around tail spend management has been building over the past few years. From being recognized in the Gartner Hype Cycle, to being named #159 on the Inc 5000 Fastest Growing Company list, and all the wins in between, we are excited that tail spend management is getting the recognition it deserves.
However, this is just the beginning. Fairmarkit is excited to accelerate our growth through the raise of a $35.6 million Series C led by OMERS Growth Equity, with participation from GGV Capital, Insight Partners, Highland Capital Partners, and ServiceNow. As our team continues its mission in revolutionizing the way organizations buy and sell, this capital will fuel further development of our platform, expand key partnerships, and grow the Fairmarkit team.
Momentum since our Series B
When we raised our Series B in 2020, the pandemic was shining a light on the importance of procurement and supply chain functions. With the need to do more with less and maintain business continuity through supply chain disruptions, our customers doubled down on optimizing their tail spend and streamlining the sourcing processes. We saw exponential growth in the spend our customers were sourcing through Fairmarkit, and we onboarded some of the largest companies in the world, who are now experiencing on average 10% cost savings and 60% manual effort reduction.
One of these customers, bp, has put $1.2B of spend through Fairmarkit, competitively bidding out $125M via automated sourcing. "As a global company with a massive scale of operations, Fairmarkit has allowed us to reimagine our entire sourcing process,” said Nick Wright, Digital and Innovation Sourcing Director, bp. “When tasked with doing more work with fewer resources, Fairmarkit’s innovation allowed us to automate our buying processes and complete our requirements.”
Now is the time to build on the momentum we’ve seen.
We’re at a moment in our growth where both internal and external factors point to hitting the jets. External factors, such as inflation and the fear of a recession, are causing companies to look for areas for savings and ensure competitive pricing on necessary spend. Leadership is hesitant to add headcount (and in many cases are reducing it) and is looking to better manage spend without additional resources. Our existing customers are also pushing us to expand so they can continue to drive better data visibility, faster turnaround times, and more savings. We’re accelerating our growth with this new investment to ensure our customers are getting the most value possible.
Where we’re doubling down
With this fresh capital and help from our investors, we will broaden Fairmarkit’s platform and team to increase the business impact we can make for our customers. At the forefront of this is our dedication to autonomous sourcing – we are committed to making it easier to optimize tail spend and sourcing processes across the board. We’ll also be investing in other strategic bets: data science, integrations, partnerships, supplier experience, and payments.
We could not have reached this exciting milestone without our incredible Fairmarkit team. Thank you all for your hard work and dedication to our mission. If you’d like to join our family, we’re hiring! Check out our careers page to learn more.
Looking forward, we are excited to continue growing alongside your businesses and bringing your teams additional value. If you’re interested in working together to accomplish this for your organization, learn more about how Fairmarkit can support you here.
Thank you for being on this journey with us.