Arkestro, a frontrunner in predictive procurement technology, has announced a substantial $36 million funding round, strategically led by Altira Group and Aramco Ventures, with contributions from existing investors including NEA, KDT, and Activant. This investment reflects the growing recognition of Arkestro’s innovative platform, which integrates artificial intelligence, behavioural science, and game theory to revolutionise procurement processes for enterprises.
The core proposition of Arkestro’s Predictive Procurement Platform lies in its ability to streamline procurement cycles and foster enhanced collaboration among suppliers. The platform claims to deliver an average savings of 18.8% on every $1 million spent—an attractive proposition for businesses grappling with rising operational costs. By employing what Arkestro describes as its patented “three sciences”—Negotiation Science, Supplier Science, and Process Science—the platform aims to empower procurement teams to proactively shape outcomes rather than simply reacting to market conditions.
This latest funding is designated to fuel Arkestro’s expansion and technology advancements, enhancing its mission to unveil hidden savings and fortify supply chain resilience. According to Rob DeSantis, CEO and Co-Founder of Arkestro, this investment is a direct response to the increasing demand for predictive technology in procurement. He emphasized the need for contemporary procurement teams to navigate complex global challenges effectively, noting, “Legacy processes continue to slow decision-making and leave cost savings untapped.”
The partnership with Altira Group and Aramco Ventures not only provides financial backing but also connects Arkestro to influential players in the oil and gas sector, collectively responsible for a substantial portion of global procurement expenditure. J.P. Bauman, Partner at Altira Group, noted that Arkestro’s application of AI is particularly transformative, granting procurement experts capabilities that can elevate their role within enterprises.
In parallel with this funding round, Arkestro has joined the Amazon Web Services (AWS) Partner Network. This collaboration is expected to further amplify the company’s offerings by leveraging AWS’s cloud capabilities, facilitating higher scalability and efficiency for its clients. The integration with AWS aligns seamlessly with Arkestro’s broader growth strategy, which is focused on enhancing its technological capabilities and expanding its global footprint.
The company has also garnered significant recognition within the industry. It was honoured with two awards at the 2024 Future of Sourcing Awards, highlighting its dedication to innovation. Furthermore, Arkestro has been named a top sourcing technology vendor in Spend Matters’ Fall 2024 SolutionMap. Such accolades reinforce the platform’s efficacy in driving financial outcomes and procurement efficiency, with reported savings of 16% within the initial 60 days of implementation by its clients.
Moreover, Arkestro’s predictive procurement orchestration platform has drawn attention from various sectors, including a strategic alliance with Bloom Energy to optimise complex procurement processes while adhering to environmental standards. This collaboration exemplifies the platform’s application in high-stakes environments, where operational efficiency and compliance with ESG goals are paramount.
In light of these developments, Arkestro is positioned not only as a solution provider but as a key player in redefining procurement into a strategic and revenue-generating function for businesses. The company aims to continue its trajectory of growth and innovation, marking a significant evolution in the procurement landscape.
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Source: Noah Wire Services
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