CADDi, Japan's B2B order and supply platform, raises $73
Million Series B funding

CADDi, Japan’s B2B order and supply platform, raises $73 Million Series B funding

CADDi, Japan's B2B order and supply platform, raises $73
Million Series B funding

Companies across many industries are struggling to find a solution for balancing the supply-demand gap after COVID-19 has disrupted the manufacturing supply chain, including the semiconductor shortages.

CADDi is a Tokyo-based B2B order and supply platform for the manufacturing and procurement industries. It combines supply and demand by creating and maintaining a balance between supply and need through its automatic calculation system.

Globis Capital Partners, World Innovation Lab (WiL) and Globis Capital Partners led the $73 million Series A round. Existing investors DCM as well as Global Brain were also involved. The round also includes six new investors, including Arena Holdings and DST Global as well as Minerva Growth Partners (Tybourne Capital Management), Tybourne Capital Management, JAFCO Group, SBI Investment, Tybourne Capital Management, Tybourne Capital Management, Tybourne Capital Management and Tybourne Capital Management.

CADDi was established by Yushiro Kobashi, CEO, and Aki Kobashi (CTO) in November 2017.

Sources close to the transaction estimate that $450 million is the post-money value.

CADDi has now raised $90.5 million in new capital. The company completed a Series A round of $9 million led by DCM, followed by Globis Capital Partners, WiL, and Global Brain.

Funding proceeds will be used to accelerate digital transformation, hire and expand into global markets.

We enable the integrated production of entire sets of equipment that include custom-made components such as sheets, metal and machined parts. Yushiro Kato, CEO, said that an automated quotation system, based on an algorithm of cost calculations, selects the company to produce the best order quality and delivery dates and prices, and creates an optimal supply chain.

CADDi’s order platform aims to change the structure of the manufacturing sector from one with multiple sub-contractors to one that is flat and connected. This will allow those at the forefront of the industry to spend more time doing creative work. Kato stated.

CADDi’s unique ordering platform is backed up by its technology, including an automatic cost calculation system and a drawing management system. It offers a 10%-15% cost savings, stable capacity, and balanced order placement for its 600 Japanese suppliers.

CADDi has experienced a significant increase in the demand for its services. Kato stated that our business is growing rapidly and we have received more orders than ever before. This has led to an increase in the presence of the company in both western and eastern Japan to satisfy this increased demand.

Kato said, “We will continue to expand our ordering platform and also provide purchases (manufacturers), and supply partners with technology directly to encourage digital transformation of their operations. For example, the production and drawing management systems.”

We are considering selling “Drawing Management SaaS” in the near future. This technology has already been utilized internally by CADDi for its ordering process. It will help customers eliminate operational problems in managing piles of drawings. Our ‘Drawing Manager SaaS’ technology not only helps manage drawings properly, but it also allows for the practical use of data from drawings to aid in future decisions and actions in order to procure their goods.

Kato stated that CADDi will continue to grow in other markets, particularly Southeast Asia. Kato said that many of our Japanese clients have branches and subsidiaries in these countries. This is a natural opportunity to expand our value proposition, and to provide seamless and consistent service to customers.

Kato stated that it will continue to invest in its hiring process, particularly engineers to help develop CADDi’s platform and create new businesses. In the next three-years, it plans to employ 1,000 people. CADDi employed 102 people as of March 20, 2021.

Kato stated that the company plans to be a worldwide platform, with sales in excess of US 9.1 billion by 2030 (that’s 1 trillion YEN).

COVID-19 had different impacts on various industries within the manufacturing and procurement sector. “The automobile and machine-tool industries suffered a temporary decline of up to 90% due to the pandemic, while the demand for other sectors such as medical and semiconductor has exploded,” Kato stated. According to Kato, COVID-19 has resulted in more company demand as CADDi’s system balances receipts across many industries.

Masaya Kubota is a partner in World Innovation Lab. She told TechCrunch that CADDi’s method of aggregating demand and supply has proven indispensable for both buyers and manufacturers. The pandemic disruptions have disrupted the supply chain. CADDi was our first investment in 2018. We believed strongly in their mission to digitally transform one of the oldest industries, the $1 Trillion procurement market.

Kenichiro Hara (another investor principal at DCM) also stated in an email interview to TechCrunch that “The pandemic exposed the supply chain vulnerability of the manufacturing sector very early.” If a country goes into lockdown, or the factory stops operations, customers are unable to procure parts necessary for their product production. The entire supply chain can be affected as a result. CADDi’s main value-add is finding and contacting new suppliers quickly.

PubliƩ at Tue 24 August 2021, 00:16.04 +0000

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