Magentic secures 5.1 million euros

The British start-up Magentic has closed a seed financing round of 5.5 million US dollars (approx. 5.1 million euros). The round was led by Sequoia Capital, with participation from First Momentum and Westly Group. The aim of the start-up is to develop an AI agent platform to optimize global supply chains and purchasing processes.

AI agents instead of traditional software solutions

At the heart of the solution are the so-called "Mages", AI-controlled agents that can be integrated into procurement and supply chain departments as digital team members. They automate operational tasks along the supply chain, such as checking contracts, maintaining master data or reconciling invoices. According to Magentic, they identify potential savings in the millions.

The Mages should not only provide support, but also take over processes independently by communicating with existing tools, answering emails and analyzing thousands of documents simultaneously. The AI always draws on traceable sources, such as specific contract clauses or correspondence. This is intended to create trust and transparency in use.

The problem of "value leakage"

Magentic addresses a challenge that many companies are familiar with: so-called value leakage, i.e. losses due to inefficient processes, missed discounts or non-compliance with supplier contracts. According to the start-up, a purchasing volume of 2 billion US dollars alone can result in an annual loss of around 40 million US dollars. This is only due to unrecognized or unclaimed claims.

The focus is therefore not on additional dashboards or tools, but on closing process gaps in the existing system using appropriate software agents.

First pilot customers

The solution is already being used by the first pilot customers. According to Magentic, the Mages are making a direct contribution to earnings before taxes (P&L) - in some cases, 10 to 20 million US dollars can be realized annually. The model is based on a "pay-per-cure" approach: customers only pay for savings actually achieved.

For example, one Mage identified that 25% of supplier documents at a Fortune 500 manufacturer were incorrect or offered potential savings. From forgotten volume discounts to missing clauses, automated detection and suggested actions helped to optimize processes and generate recoveries.

The best AI companies today sell results - not licenses. Magentic delivers measurable ROI by enabling their agents to realize real savings for businesses. This is exactly what global industrial companies need now.

Julien Bek, Partner at Sequoia Capital

Magentic is backed by a team with experience from companies such as OpenAI and McKinsey. The platform was developed according to the highest security standards, including SOC2 Type 2, ISO 27001 and GDPR-compliant. The startup promises minimal set-up times and rapid integration for entry into complex corporate environments.

AI as the new standard in procurement

Magentic plans to use the funding to further develop the platform and scale it into other markets. The long-term goal is to enable companies worldwide to switch to an AI-based procurement model. In an increasingly volatile global economy, the start-up sees this not only as an efficiency gain, but also as a competitive factor.