SourceDay, which makes supply chain management software, announced on Tuesday that it has raised $12.5 million in venture capital funding.
The Austin-based startup, founded in 2013, has raised $23.3 million to date. The company’s latest Series B round of funding was led by Baird Capital with participation from existing investors Silverton Partners, ATX Ventures and Draper Associates.
SourceDay is filling a need for manufacturers and distributors that depend on supply chain management software now more than ever because of the impacts of the COVID-19 global pandemic.
“As businesses face unprecedented times, they are seeking faster answers to bigger challenges,” Joanna Arras, Principal at Baird Capital and SourceDay’s newest board member said in a news release. “More than ever, companies need resilient and agile supply chains. Poor supply chain visibility and inefficient collaboration will be crippling during this time of rapidly shifting demand. Baird Capital is proud to invest in SourceDay to help companies face these challenges head-on.”
SourceDay has more than 6,000 global manufacturers as customers. The latest funding will “enhance SourceDay’s ability to help its customers mitigate supply chain risk as the pandemic continues to play out and prepare for when the eventual rebound hits,” according to a news release.
SourceDay expects to use the funds from this round on product development and marketing.
“The COVID-19 pandemic is exposing the ways that outdated supply chain practices make manufacturers vulnerable,” Tom Kieley, CEO, SourceDay, said in a news release. “I’m excited to add Baird Capital to our team of investors. Baird’s experience with leading SaaS companies and its relationships across the manufacturing sector will help SourceDay achieve our mission to make companies less vulnerable to current supply chain disruptions and to all kinds of shifts in demand.”
Last year, SourceDay landed thousands of new customers. The company also doubled in size to more than 50 employees.
