London-based Magentic has secured €4.6 million in funding to assist the corporate’s purpose of constructing a platform of autonomous AI brokers – known as Mages – designed to deal with inefficiencies and ship vital price financial savings throughout international provide chains.
The funding was raised by Sequoia Capital, First Momentum, and Westly Group.
“In the present day, the most effective AI corporations are promoting outcomes not seats. Within the outdated world, SaaS bought the promise of ROI. Within the new world, AI truly delivers it. That’s why we’re proud to accomplice with Robin, Odhran and the staff at Magentic – their AI ‘Mages’ work seamlessly alongside procurement and provide chain groups to drive instant P&L positive factors and we are able to’t wait to see the impression they ship as they proceed to construct,” mentioned Julien Bek, Companion, Sequoia Capital.
Based in 2025 by Robin Van Aeken and Odhran O’Donoghue, Magentic is positioning itself as a brand new sort of enterprise software program firm. Somewhat than providing dashboards or analytics instruments, Magentic embeds AI brokers immediately into procurement and provide chain operations. These Mages carry out duties usually dealt with manually – corresponding to reconciling contracts, auditing provider efficiency, and figuring out price leakages – with the goal of manufacturing measurable P&L impression.
The corporate argues that offer chains have turn into more and more fragile and outdated in how they function. From pandemic disruptions to geopolitical tensions, enterprises are contending with risky environments that render legacy playbooks ineffective.
Magentic’s pitch is easy: conventional software program has plateaued, and a brand new mannequin – one pushed by autonomous brokers – is required.
In accordance with the corporate, unclaimed financial savings and contract breaches lead to main worth leakage. For instance, an organization with €1.7 billion in provider spend could lose as much as €34 million yearly because of missed reductions, fee time period errors, or contractual non-compliance.
Magentic’s Mages are designed to deal with this hole by figuring out and resolving such points autonomously. One such Mage, Sam, was deployed by a Fortune 500 producer and located that 25% of provider paperwork had points affecting profitability – together with fee phrases, lacking clauses, and unclaimed credit. Sam not solely resolved these points but in addition carried out a root trigger evaluation to assist forestall them from recurring.
Early shopper deployments are reportedly recovering between €8.5 million and €17 million per 12 months in financial savings. Magentic operates on a pay-per-cure mannequin – which means purchasers solely pay when precise worth is delivered – eliminating conventional software program licensing prices.
Somewhat than changing human employees, Mages are meant to boost current groups – taking up tedious, data-heavy duties in order that human staff can give attention to technique and provider relationships.
Magentic works carefully with Fortune 500 producers and sees itself taking part in a vital function in serving to corporations adapt to fast-changing international dynamics.
As pressures mount on procurement leaders to seek out efficiencies and enhance resilience, the corporate goals to supply a brand new mannequin of enterprise agility by autonomous brokers.
