Japan-U.S. Startup CADDi Lands $38M to Scale AI-Powered Procurement Software

CADDi, a Japan- and U.S.-based startup that leverages AI to enhance supply chain efficiency for global manufacturers, has secured $38 million in fresh funding. The investment, classified as a Series C extension, was led by U.K.-based venture capital firm Atomico, with additional backing from Global Brain and Minerva Growth.

This latest round values CADDi at $470 million and brings its total funding to $202 million since its launch in 2017. The company plans to use the capital to accelerate its expansion and further develop its AI-powered platform, which converts legacy drawings and supply chain data into actionable insights for manufacturers.

CADDi began as a tech-driven manufacturing marketplace before transitioning into an AI-powered data platform. Its software enables manufacturers to optimize supply chains by analyzing technical drawings and detecting similar or duplicate components across multiple suppliers. This helps reduce procurement inefficiencies, improve sourcing strategies, and cut costs. The company serves industrial machinery, semiconductor manufacturing, and automotive sectors, with notable clients including Tokyo Electron, Subaru, Kawasaki, and Hitachi.

In July 2023, the startup secured $89 million in a Series C funding round with participation from Minerva Growth Partners, World Innovation Lab, DCM Ventures, and Globis Capital Partners. CADDi operates in the U.S., Japan, Thailand, and Vietnam and is actively growing its international presence. The latest funding will fuel its expansion in the U.S., which has already gained multiple clients. Additionally, the company plans to scale its software engineering team from 150 to 300 employees to accelerate product development.

CADDi uses AI to help large manufacturers tackle the challenge of handling countless similar parts from different suppliers. Its platform analyzes technical drawings, PDFs, and blueprints to identify duplicate components and recommend alternatives. This allows manufacturers to enhance procurement efficiency, streamline their supplier base, and secure better pricing. For example, an automotive client successfully cut its fastener SKUs by 60% with CADDi’s software.

Companies like Subaru and DENSO have reported benefits from CADDi’s platform. Subaru stated that the software has saved employees hundreds of hours monthly searching for technical drawings. DENSO highlighted how the technology allows younger workers to source parts more efficiently, reducing reliance on veteran employees with specialized procurement knowledge. The company is also collaborating with CADDi to enhance the platform’s capabilities, including 3D drawing searches.

Traditional procurement systems, often siloed across different departments, make it difficult to extract meaningful insights. CADDi’s AI platform bridges this gap by structuring and enriching supply chain data, allowing companies to make faster, data-driven decisions. CEO Yushiro Kato noted that ongoing geopolitical challenges, such as tariffs, further complicate supply chains, making AI-powered solutions like CADDi’s increasingly valuable.

Kato did not disclose CADDi’s current revenue figures or the exact number of companies using its platform but stated that it aims to reach $1 billion in software revenue by 2030. 

Initially, CADDi operated as a marketplace for machinery components, sourcing parts based on customer specifications. However, the company developed AI-driven software capable of searching technical drawings to streamline its operations. Recognizing the broader potential of this technology, CADDi pivoted three years ago to focus solely on offering its AI platform as a cloud-based solution for manufacturers.