London-based Solvo.ai has raised $4 million in a seed round as the startup enters the increasingly competitive field of AI-based logistics and supply chain optimisation. The capital is slated to aid the startup’s scaling of commercialisation of their first product, and AI-power dynamic pricing engine for enterprise.
It seems that you can’t swing a dead cat in today’s startup landscape without flogging another logistics/supply chain optimisation tool, and yet, with Solvo.ai, we’ve got another horse in the race.
And for good reason. We’ve all experienced the delayed shipment or five, rising prices, etc. and according to McKinsey, “companies can now expect supply chain disruptions lasting a month or longer to occur every 3.7 years, and every decade companies can expect to lose 42% of one year’s EBITDA”.
“Logistics is a $5 trillion industry and the backbone of global trade. But the disruption caused by Covid-19, trade wars, and the conflict in Ukraine has shown just how vulnerable supply chains are,” explained Solvo.ai CEO and co-founder Gaurav Bajaj. “With the accelerating impact of climate change and pressures around the transition to net zero and sustainability, the future looks even more uncertain and complex.”
A problem to solve and highly lucrative to the winners. Enough said.
However, when it comes to Solvo, the founding team of Bajaj, who previously commercialised AI technology at engineering startup Secondmind, and Secondmind co-founder Dr. Dongho Kim, whose previous work included developing an AI-powered dialogue system that became part of Apple’s Siri, might just have a competitive advantage that makes them stand apart from the crowd.
“The emerging area for pricing players is relatively specialist. However, there are a number of challengers that are available in the market such as PROS, Mizzenit, Quincus, Stargo incumbents such as Maersk (through Maersk Spot). These challengers are moving towards self learning capabilities but appear to be stuck in offering a digital version of 'rules based approach'. Secondly, their focus is on building generic solutions for the wider industry while Solvo.ai has a targeted focus."
"Our aim is to deliver, to our customers, the best decision optimisation at the intersection of the supply chain industry, Self-learning capability, and human-machine teaming. All of this to improve and drive better business KPI performance - Market share, profitability, customer conversion rates, and sustainability,” says Bajaj.
“There is huge potential in using machine learning to discover new patterns in supply chains that can revolutionise business. The latest developments in deep learning make it possible to capture these patterns through algorithms and identify the most influential factors in supply chain ecosystems, while constantly learning in the process. Gaurav, Dongho, and the entire Solvo.ai team have a highly complementary mix of charisma and ambition, combined with serious technical capabilities,” commented Rick Hao, Partner at Speedinvest.