ProcurementFlow, an Estonian SaaS provider, has raised €600,000 of funding from a variety of investors. The round was led by Lemonade Stand, a new angel investment fund in Estonia, plus other backers such as: Pipedrive co-founder Martin Henk, and Bolt co-founder Martin Villig, AdCash founder Thomas Padovani, Bellone Invest, Stagnation Lab, Katana MRP co-founder Kristjan Vilosius, Skeleton Technologies founders Taavi Madiberk and Oliver Ahlberg. Procurement — or the sourcing and selection of goods — involves many rounds of research, requests, negotiation, and approval. Europe has about 30,000 manufacturers that tailor-make products based on customer requirements, and each purchase must go through a procurement process. That’s a lot of room for miscommunication, misalignment, and confusion. ProcurementFlow aims to digitise this process with its cloud-based software for procurement teams. The SaaS also works with customers in the civil engineering, energy, and food and beverages sector, where the processes and pain points are similar.
CEO of ProcurementFlow Tarmo Saidla is something of a procurement expert, having previously led sourcing and supply chain analysis at the global industrial group ABB. He saw an opportunity to save money and bypass frustration. “Procurement is regarded as the biggest cost function, as on average 43 percent of all costs go through procurement function. This makes it a stressful and complicated environment to work in. ProcurementFlow will turn this biggest cost function into a profit generator. With us, companies reduce time-to-market for new products and services as well as enable supplier-led innovation,” he said.
Commenting on the opportunity ahead, managing partner of Lemonade Stand Siim Teller said: “95 percent of procurement professionals believe they’ll see a digital transformation within the next two to three years, according to The Hackett Group. ProcurementFlow has the right team, timing, and ambition to have a significant impact in this domain.”