BOSTON, Oct. 23, 2019 /PRNewswire/ -- Fairmarkit, the award-winning AI-powered tail spend management software, today announced an $11 million Series A investment round led by Insight Partners with participation from the company's seed investors. Fairmarkit automates enterprise procurement, driving cost and time savings through increasing competition and reducing manual touchpoints. The platform enables procurement departments to increase spend under management and reduce supplier risk.
Founded in 2017, Fairmarkit serves customers in a wide variety of industries, including healthcare, manufacturing, media, and transportation. Fairmarkit's machine learning technology has been recognized by industry specialists as a key disruptor in the procurement space, including being named #1 Disruptor by CPOStrategy and a Future 5 award recipient by Spend Matters. Fairmarkit customers, such as ServiceNow and Univision, realize over 15% cost savings, improved spend visibility, 30-40%+ reduction in manual efforts, and stronger compliance and policy adherence.
"We found Fairmarkit's tail spend management platform to be well-situated to disrupt manual procurement processes and help businesses save time, energy, and money," said Thomas Krane, Vice President at Insight Partners. "We look forward to working closely with the Fairmarkit leadership team as they scale the company and accelerate the adoption of the platform across a wide segment of enterprise customers."
Building on its success in automating procurement and streamlining workflows for non-strategic purchases, Fairmarkit will use this new investment to address the growing demand from Fortune 500 companies for its AI-powered spend management technology. Fairmarkit has new job opportunities throughout the company, including product development, customer success, and marketing. The company will also use this investment to expand its product suite in partnership with its customer advisory board that includes procurement leaders from companies such as The Andersons Inc., Univision, ServiceNow, and Blue Cross Blue Shield of Kansas City.
"ServiceNow's Fairmarkit implementation enables a streamlined procurement process through automation," explained Joe Frederick, Director of Spend Management at ServiceNow. "With their AI-powered technology, our procurement department has been able to better focus on strategic initiatives and we have realized significant cost savings on non-strategic purchases. We're excited to continue our partnership to expand that seamless user experience throughout the procurement process."
Fairmarkit enables effective spend management by driving automation and leveraging data, allowing procurement teams to reorient their time and focus toward strategic initiatives. Fairmarkit leverages machine learning and artificial intelligence to create market competition and automate tail spend, reducing manual touchpoints and driving cost savings for the 80% of enterprise procurement transactions that have been ignored historically.
"We're thrilled to welcome Thomas Krane and the whole Insight team to the Fairmarkit family," said Kevin Frechette, Co-founder and CEO of Fairmarkit. "Insight shares our vision of driving automation across the historically manual procurement industry. Although we've gained traction with dozens of Fortune 500 customers, our new partnership will dramatically accelerate the permeation of AI-powered technologies into procurement processes."
As part of the investment, Insight Partners' Thomas Krane and Tarek Alaruri, Co-founder & COO, will join the company's Board of Directors.
Through streamlined sourcing, vendor identification, and automated quoting, Fairmarkit accelerates the bid-to-buy process. The solution uses machine learning and artificial intelligence to reduce manual effort by 30-40% on purchases while yielding savings of over 15%. The platform connects directly to your existing internal systems providing a rapid implementation process and enabling more spend to be placed under management. Fairmarkit is headquartered in Boston and is the only solution focused exclusively on tail spend sourcing and payment processes. For more information on Fairmarkit, visit www.fairmarkit.com or follow us on Twitter @fairmarkit.
About Insight Partners:
Insight Partners is a leading global venture capital and private equity firm investing in high-growth technology and software companies that are driving transformative change in their industries. Founded in 1995, Insight currently has over $20 billion of assets under management and has cumulatively invested in more than 300 companies worldwide. Our mission is to find, fund, and work successfully with visionary executives, providing them with practical, hands-on growth expertise to foster long-term success. Across our people and our portfolio, we encourage a culture around a core belief: growth equals opportunity. For more information on Insight and all its investments, visit insightpartners.com or follow us on Twitter @insightpartners.