CNC24, a startup on a mission to digitize precision parts procurement has just secured €8.25 million. The Berlin-based startup is now ramping up its expansion across Europe and expanding its global supplier network.
The market for industrial and machine components hasn’t really changed in recent years. Whilst other sectors have jumped on the digital bandwagon, procurement processes in this space have remained complex and hard to navigate. As we live in increasingly turbulent times economically, with growing pressures on supply chains, industry innovation in procurement is needed now more than ever before.
This is what CNC24 is aiming to do. Founded in 2019 by the former wefox CMO Willi Ruopp and industry expert Marlon Gerat, CNC24 has developed an AI-driven B2B2 marketplace platform.
Willi Ruopp, CEO and Co-Founder of CNC24 explained: “We are on the road to become the undisputed No. 1 for precision parts in Europe. We founded CNC24 with the goal to revolutionize the component sourcing process with a hybrid approach that combines smart AI-driven automation with personalized expert consulting. We are very excited to have well-known investors on our side to support our integrative platform approach and conquer the €50+ billion market for components.”
The Berlin-based team has just closed its Series A funding with €8.25 million in the bag. Future Industry Ventures led the funding round alongside coparion, EquityPitcher Ventures and existing investor, Seedcamp.
Stefano Gurciullo, Partner at Future Industry Ventures, said: “In increasingly volatile markets struck by supply chain risks, CNC24 addresses a major thorn in the side of the manufacturing industry. Sourcing industrial components from the right partner, at the right price and quality is both costly and time intensive, especially for SMEs and deep tech ventures. We are impressed by CNC24’s strategy of mixing a platform approach with top grade quality assurance, ultimately saving truly substantial resources to their customers. We are deeply convinced by the team’s vision and cannot wait to expand this new standard in sourcing and procurement together.
The startup is also supported by experienced business angels such as the wefox Co-Founders Dario Fazlic and Fabian Wesemann.
With its innovative platform solution, the technology company creates a transparent process for the procurement of manufacturing parts and digitizes the value chain up to a fully automated procurement process.
The company leverages a global network of suppliers and so is able to guarantee free capacities, high material availability and on-time delivery of components at all times. For quality control, all parts undergo an additional testing process in the in-house measuring centre before they are delivered.
CNC24 is tapping into a massive market, able to serve all industrial sectors from special machinery and plant engineering to IoT and medical, testing and measurement technology. Already, the platform has customers such as SIEMENS, DIEHL Group, Qualcomm, KRONES AG, Carl Zeiss, Vishay, BASF, CERN, FANUC and Syntegon are trusting CNC24 as a sourcing partner for precision components. In total, CNC24 has already generated an offer volume of over 500 million euros after just three years.
The data-driven approach enables a smooth matching process between the parts and the machine tools of over 500 manufacturing partners around the world. CNC24 relies on market-driven pricing, in which the connected manufacturers calculate their offer prices independently and available production capacities can be accessed in real-time.
Marlon Gerat added: “With our unique hybrid approach, we give our customers exactly what they need and create a lasting customer relationship. While the procurement process is already completely automated, our expert team of engineers and machinists are available to advise our customers. In addition, we can guarantee a high-quality standard not only because of our carefully selected partners but our in-house Quality-Assurance-As-A-Service center in Berlin.”
The company’s goal is to create an ecosystem for a transparent and simple procurement process for customers and suppliers. This new funding will be used to further develop the product, ramp up sales organization and recruit new employees. This is in addition to expanding into new markets.
Stefan Martinez, Investment Manager at coparion, commented: “CNC24 has convinced us from the very beginning with its profound understanding of the market and customer needs. The strong focus on high-quality and intensive customer support in the right place clearly sets CNC24 apart from the competition. This can also be seen in the great customer feedback and strong sales growth. The team around Marlon and Willi complement each other’s strengths perfectly and, in addition to deep industry expertise, have demonstrated the drive needed to build something huge. We look forward to supporting CNC24 in this funding round and over the years to come.”