Mid-market companies often struggle with supply chain management due to their inability to afford comprehensive solutions like SAP and the lack of sufficient IT resources to manage complex programs. To address this persistent issue, Didero, an early-stage startup, has developed an AI-driven tool specifically tailored for these companies. Today, Didero announced a $7 million seed investment, emerging from stealth and making its product generally available.
Didero aims to create an end-to-end suite that streamlines various procurement tasks. According to Tim Spencer, product lead and co-founder, their solution helps procurement teams manage suppliers across multiple point solution markets. The platform facilitates supplier discovery, contract negotiation, purchase order management, invoicing, and payments. It also provides detailed analysis and handles background supplier management tasks.
Spencer emphasized that AI plays a crucial role in their solution, particularly for mid-market manufacturers who lack the resources of larger companies. AI automates many tasks that would otherwise be time-consuming and labor-intensive. “One of the huge unlocks here, particularly for our wedge of mid-market manufacturers, is AI,” Spencer said. “In the pre-AI world, it was basically not possible to do a lot of these tasks [in an automated way].”
Utilizing Multiple AI Models
Didero employs various AI models, including those from OpenAI and Google Gemini, depending on the task or requirement. The company is continuously experimenting to determine which model best suits their needs. CEO Tom Petit explained, “We’re using a lot of foundational models and APIs that are out there. We’re not creating our own foundational models, but we’re doing a lot of fine-tuning of some of the existing models.” Additionally, Didero has developed a few specialized models to extract data from critical procurement documents like tables, purchase orders, and price lists.
The founders of Didero bring a wealth of expertise in supply chain management and AI technology. Tim Spencer previously ran procurement at Markai, a startup he co-founded, while Lorenz Pallhuber spent seven years at McKinsey advising Fortune 500 clients on supply chain and procurement software. CEO Tom Petit, who has a background in AI and machine learning, also co-founded Landis, a startup that raised over $200 million to help renters secure mortgages.
Recent Developments and Funding
Didero launched in December and has been diligently building its product since then. The $7 million seed round, which closed last month, was led by First Round Capital with participation from Construct Capital, AI Grant, Box Group, Company Ventures, and Conviction. Industry angels also contributed to the funding round.
Didero’s AI-driven supply chain management tool offers mid-market companies a viable solution to their procurement challenges. By automating tasks and leveraging AI models, Didero aims to level the playing field for smaller companies, enabling them to manage their supply chains more efficiently and effectively. With a strong founding team and substantial seed funding, Didero is well-positioned to make a significant impact in the supply chain management space.
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