Datapred optimizes direct material procurement for multinational companies. Here’s why we invested.
We proudly announce our backing of the Datapred team, who are scaling a timely cost and risk management solution for supply chain organizations. The company’s undeniable value proposition — up to 5% cost savings on direct material procurement — makes it poised to take the lead in a huge market.
Procurement and sourcing teams rely heavily on technology to streamline their operations and maximize value. JOIN Capital is proud to lead a Series A round for Datapred — Europe’s leading machine learning software for optimizing complex procurement processes.
As a first mover in procurement optimization for industries that need it most, Datapred has the necessary components for scaling and meeting the demands of a multi-billion dollar market. Designed to minimize risk and cost associated with direct material procurement, its platform uses machine learning to deliver up to 5% savings on costs year over year and helps to better understand the corresponding risks.
Datapred provides insight into price movements and volatility over strategic time horizons, while taking into account company-specific constraints. As a result, commodity buyers become more resilient through long-term planning and financial control.
Why we invested in Datapred
As always, we’d like to take a moment to break down the why behind the yes.
Market timing: Demand for stability in unstable markets.
The increasing instability of direct material markets coupled with volatile price movements leads to excessive costs and increased risk exposure for procurement teams. The COVID-19 crisis has further crystallized these circumstances. When profit margins are thin, timely responsiveness is of utmost importance. Datapred’s “first mover” status in Europe, alongside its strong references and dynamic team capabilities, make it poised to take the lead in helping supply chain organizations find, gather and integrate internal and external data for key decision-making. This huge opportunity consists of an annual potential addressable market of over $3 billion.
Value proposition: Cost savings and planning optimization.
Datapred focuses on creating new opportunities for chief procurement officers. Through price forecasting, price risk analysis, optimized alignment, long-term planning and hedging capabilities, cost savings of up to 5% on direct material is achievable. Datapred provides significant, measurable value for organizations, which is why many have already chosen to expand use of the software to different materials and geographies.
Technology: Machine learning to deliver reliable predictions.
Optimization through machine learning is at the core of Datapred’s USP. Its modeling engine for streaming data analyzes relevant time series data to deliver reliable price predictions in fluctuating markets over different time horizons. The platform allows for the transformation of abstract predictions into precise, actionable procurement programs, therefore guiding customers in how much material to buy, and when.
Team: A group of standout engineers.
The Datapred team consists of experienced engineers, data scientists and mathematicians — a complementary bunch that we firmly believe is capable of scaling a technologically sophisticated product.
Traction: Demand from multinationals.
The release of Datapred’s software has garnered significant interest from large multinationals in energy, metals, chemicals and more. Today, more than $1 billion in energy and raw material spend is being optimized.
For questions or comments on Datapred, drop us a line at email@example.com