German paretos secures €8.5M Series A

The Heidelberg-based AI startup paretos has closed its €8.5 Series A funding round. The funding is led by Acton Capital, known for its investments in companies such as Etsy, Cyberport, and HomeToGo. Existing investors UVC Partners and LEA Partners, also participated in the round as well as existing investors Interface Capital as well as former Vodafone CEO Hannes Ametsreiter.

paretos' AI-based platform supports market leaders such as HelloFresh, Otto Group, Faller Packaging, ARMEDANGELS, and EDEKA in decision-making for critical business processes.

With the fresh capital, paretos founders Thorsten Heilig and Fabian Rang plan to accelerate growth further: "Our platform typically delivers an ROI of over 100% in the first year and generates business impact worth millions. With the support of our investors, we aim to expand our technological lead," said Thorsten Heilig, Co-Founder and CEO of paretos. "Currently, many companies in Germany and Europe are facing significant pressure. We offer them a powerful tool to address urgent challenges – from evolving customer demands to complex supply chains, and cost and efficiency pressures."

"While many AI technologies are still in the hype phase, paretos has impressively demonstrated that their Decision Intelligence solution creates long-term value for companies that directly reflects in business results. Especially in the current tense economic climate, this is the game-changer for real-world AI application," said Fritz Oidtmann, Managing Partner at Acton Capital. "We look forward to accompanying the team in the next phase and jointly shaping the future of the market."

Gartner has recognised paretos as one of only nine European representative Decision Intelligence providers.

According to the institute MarketsandMarkets, the global market for Decision Intelligence is expected to grow by 25% annually by 2030, quadrupling to €50 billion. "With its patented and highly innovative technology, combined with a strong application focus, paretos has the best chance of taking on an international leadership role," said Andreas Unseld, General Partner at UVC Partners. And Nils Seele, Partner at LEA Partners, added: "After conceptualizing AI, it's now about transformation. Anyone looking for ROI in AI applications will find it at paretos."