SPARETECH raises EUR 10 million in Series A

SPARETECH recently closed a EUR 10 million Series A financing round. The round was led by Insight Partners and also included participation from Headline and existing investors.

Stuttgart, Germany - SPARETECH provides manufacturing companies with a SaaS platform to digitally track spare parts to reduce inventory and costs. Led by New York-based software investor Insight Partners and backed by Headline and existing investors, the startup raised €10 million to drive its international expansion.

Spare parts management is one of the most overlooked factors in manufacturing competitiveness and sustainability.

Martin Weber, CEO SPARETECH

The startup's existing investor team consists of various partners. These include Headline, the Plug and Play Tech Center and well-known angel investors such as Christian Gaiser, Carsten Thoma, Christian Reber and Frederik Pfisterer.

Manufacturing companies worldwide are under pressure. Turbulent geopolitical developments, labor shortages, rising material costs, higher interest rates and stricter lending standards threaten supply chains. According to one source, large industrial companies lose up to €120 million per site due to unplanned downtime costs. Despite high spare parts inventories, 72% of companies have concerns about supply shortages.

We found that, on average, factories in their global production network have approximately 15% duplicate and 17% obsolete parts in their spare parts inventory.

Dr. Lukas Biedermann CCO SPARETECH

The market for industrial spare parts is still underdeveloped and often relies on outdated, customized solutions such as Excel spreadsheets or even handwritten records. SPARETECH provides spare parts data and the software needed to turn these insights into efficiencies. Through its global data platform, SPARETECH connects product information from original equipment manufacturers with customer databases to ensure up-to-date and complete product data in customer systems at all times.

We are deeply impressed with SPARETECH's cost efficiencies and strong revenue growth over the past year.

Teddie Wardi, Managing Director Insight Partners

SPARETECH was founded in 2018 by Martin Weber and Dr. Lukas Biedermann, two former Porsche engineers. The platform provides automated processes for spare parts management and aims to reduce downtime, costs and CO2 emissions for manufacturers. The company has developed intelligent matching algorithms to detect data inconsistencies and obsolete materials in companies' material master. SPARETECH has supported over 120 global manufacturing companies, including Bosch, Nestlé, Porsche, Yanfeng and Airbus Helicopters. The company works closely with leading partners such as ABB, Parker and Siemens.