Magentic has raised $18 million in Series A funding, roughly a year after launching, as investors continue to back software aimed at automating the messy, repetitive work of industrial procurement and supply chain management.
The round was led by Felicis, with participation from existing backers Sequoia Capital and The Westly Group. According to Magentic, the company is building AI agents that function as digital workers for large manufacturers, operating inside the tools emplo...
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yees already use, including Microsoft Teams, email and internal enterprise systems.
The startup says its technology can handle end-to-end procurement tasks such as deciding whether to buy or build a product, identifying suppliers, negotiating contracts, placing orders and processing invoices. It is also targeting both indirect procurement and direct spend on materials and other inputs used in manufacturing.
Magentic says its systems are designed for global manufacturers working across fragmented software environments, where teams often juggle legacy enterprise platforms, spreadsheets and large volumes of data. The company argues that this complexity, combined with rising industrial demand, trade disruption and budget pressure, is creating a strong use case for automation.
According to its founders, the broader opportunity is being shaped by a historic wave of capital investment tied to artificial intelligence and other industrial build-outs. The company also says its platform includes enterprise security features such as zero-data-retention arrangements with major AI providers, support for multiple cloud environments and isolated deployments across different data regions.
The funding will be used to expand Magentic’s agent capabilities, push further into procurement and supply chain workflows, and support research into AI systems that can tackle more complex optimisation problems across industrial operations. Reports from startup trackers suggest the company had previously raised a seed round, taking its total disclosed funding to $23.5 million.
The business was founded by Robin Van Aeken and Odhran O’Donoghue, both of whom previously worked at McKinsey and OpenAI, according to company and investor materials.
Source: Noah Wire Services
