New Zealand-based Oritain, a firm that provides businesses with a forensic traceability solution, announced on Wednesday, that it has secured $57M (approximately €51.72M) in a Series C round of funding.
The investment was led by London-based Highland Europe, with Jacob Bernstein from Highland joining the board. The round also saw participation from an existing investor, New York’s Long Ridge.
Jacob Bernstein says, “Oritain’s forensic science can take a commodity sample and tell you precisely where in the world it comes from. Does this cocoa come from a deforested national park? Is this cotton from where my supplier says it is? Is this coffee truly Brazilian, as the label says?”
“This groundbreaking technology is a dream solution for sourcing and sustainability leaders at the world’s largest brands who can finally get to grips with the authenticity of their supply chains. We are immensely proud to partner with the Oritain team to revolutionise origin verification,” adds Bernstein.
Providing traceability in supply chains
According to Oritain, New Zealand exports a lot of agricultural goods and its science is at the forefront of using isotopes to identify the country of origin of goods. To offer trust and protection to top producers and exporters, Oritain has commercialised this technology in the authentic spirit of innovation found in New Zealand.
Founded in 2008, Oritain claims to be a leader in using forensic science to verify product origin. It partners with brands to support their ESG commitments, reduce the risk of fraud and unethical practices and protect their reputations.
The origin of a product can be determined by examining the changing chemical composition of several settings. When anything is produced, raised, or created, it absorbs a ratio of components based on the local temperature, height, precipitation, and soil quality, this is known as an origin fingerprint.
The firm can identify items from all around the world and demonstrate their origin using technologies created at the University of Otago, Dunedin, including meat, honey, milk, and fibres.
The technology is used by luxury high-end fashion and retail brands such as Lacoste, Supima, and Primark, as well as food producers such as A2 Milk and Nescafe, to convince customers that the things they buy are authentic and created in an ethical supply chain.
Here is an explanation of Oritain’s “groundbreaking” science.
Building trust in a fragmented market
According to OECD, over $500B is lost each year to fraud and counterfeiting, which are made worse by the world’s supply chains becoming more and more fragmented.
Meanwhile, investors and customers are also becoming concerned about environmental issues, such as deforestation, which can harm long-established brands’ reputations.
Insights derived from data are provided by Oritain to assist producers and manufacturers in monitoring and modifying their supply chains in order to protect, enhance, and increase transparency and certainty for their clients globally.
In contrast to conventional traceability techniques, which can be altered or eliminated, Oritain’s technology analyses a product’s intrinsic qualities to determine its origin by combining forensic science with data.
By examining trace components that are impacted by environmental characteristics including soil composition, temperature, altitude, and precipitation, the company’s global labs can generate an Origin Fingerprint of a specific product.
An Origin Fingerprint cannot be altered or removed once it has been identified.
These fingerprints are used as standards to audit products at any point in the supply chain and are put into data banks of items tracking intricate worldwide supply systems, such as those for palm oil, coffee, chocolate, cotton, vanilla, and soy.
Businesses rely on this information to demonstrate the legitimacy and calibre of their goods, hence lowering risk and fraud.
Currently, Oritain’s services have a client retention rate of over 100 per cent and compound annual growth of 90 per cent year-on-year over the last six years.
Capital utilisation
Oritain says it will use the funds to develop the company’s technology and expand into new markets and industries.
Grant Cochrane, Global CEO at Oritain, says, “Over the past 15 years, Oritain has pioneered groundbreaking forensic and data science to become the world’s most trusted verification partner to leading global brands and institutions, providing them with the insights they need to make the critical decisions on their supply chains.”
“Our relentless focus on data, science, and process integrity has enabled us to become long-term partners with our clients to ensure the integrity of their supply chains, which is increasingly difficult to achieve in globalised and complex markets.
“We’re delighted to announce this new funding round, led by Highland Europe, to support our expansion plans as we reach new markets and industries,” adds Cochrane.
Supporting the Future of ESG
Oritain also helps firms to comply with ESG standards, which investors increasingly demand.
Additionally, nations throughout the world are creating new transparency and reporting rules as part of the Sustainable Development Goals, which include deforestation, forced labour, and product fraud.
Companies will have a competitive advantage by proving to consumers and investors that they uphold high ethical standards if they can demonstrate the authenticity, quality, and sustainability of their goods and the supply chain.
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