Magentic has raised $18 million in Series A funding to expand its AI digital workers across procurement, supply chain and industrial operations. Felicis led the round, with existing investors Sequoia Capital and The Westly Group also participating. The financing comes approximately one year after Magentic launched.
The London- and New York-based company was founded by CEO Robin Van Aeken and CTO Odhran O’Donoghue, who have backgrounds at McKinsey and OpenAI.
Magentic develops multi-agent AI systems that operate more like digital employees than conventional software assistants.
Its agents work through Microsoft Teams, email and companies’ existing systems and can complete procurement processes spanning buy-versus-build decisions, supplier selection, contract negotiation, purchase orders and invoice clearing.
The platform is designed for industrial businesses operating across billions of rows of data, large procurement budgets and fragmented legacy systems.
Magentic said one customer processes more than one million orders annually through its agents, while another has identified $4 million in savings.
Across its Global 500 customer base, which includes three of the world’s 10 largest beverage companies, Magentic said deployments typically generate 2% to 5% savings, improve data quality by approximately 60% and eliminate tens of thousands of hours of manual work.
The company supports both indirect procurement and direct spend, including raw materials used in manufacturing.
Magentic has also built security controls for AI agents operating inside sensitive enterprise environments, including zero-data-retention arrangements with major AI providers, deployment across multiple clouds and isolated deployments within specific data regions.
The Series A will support additional AI-agent development, broader procurement and supply-chain coverage and research aimed at allowing agents to address longer and more complex optimization problems.
KEY QUOTES:
“The companies that build the best intelligence into every decision they make will be the ones that compound their competitive advantage.”
Robin Van Aeken, Co-Founder and CEO of Magentic
“Getting an agent to understand a manufacturer’s complex systems well enough to take action inside them is no small feat.”
Feyza Haskaraman, Partner at Felicis
“We’re building AI that can diagnose problems, plan the fixes, take action, and see the work through across terabytes of multimodal data at once.”
Odhran O’Donoghue, Co-Founder and CTO of Magentic
