London-based startup Solvo.ai, a startup focused on improving decision-making in the supply chain and logistics sector, announced on Tuesday that it has raised $4M (approximately €4M) in its Seed round of funding.
Solvo.ai says it will use the funds to scale the commercialisation of its first product and to ramp up sales and business development. Currently, Solvo.ai is developing tools to assist supply chain experts in optimising their network and asset deployment.
Investors in this round
The investment was led by Speedinvest and Frontline Ventures.
Rick Hao, Partner at Speedinvest, says, “There is huge potential in using machine learning to discover new patterns in supply chains that can revolutionise business. The latest developments in deep learning make it possible to capture these patterns through algorithms and identify the most influential factors in supply chain ecosystems, while constantly learning in the process. We are very excited to back Solvo.ai in building the leading AI platform in the supply chain industry.”
“Improved supply chain decision making”
Solvo.ai was founded by Dr Dongho Kim and Gaurav Bajaj, who previously commercialised AI technologies at the engineering technology firm Secondmind. Kim’s earlier work includes creating a conversation system using AI that was included into Apple’s Siri.
McKinsey’s analysis shows businesses can now anticipate supply chain interruptions lasting a month or more, happening every 3.7 years and losing 42 per cent of one year’s EBITDA every ten years. In order to make supply chains durable, flexible, and self-learning by design, Solvo.ai is solving this problem with useful AI.
In a time when it is becoming more difficult to predict the health of the economy, politics, and environment, Solvo.ai assists the logistics industry in building more dependable supply chains. In partnership with one of the biggest logistics companies in the world, Solvo.ai developed its first product, an AI-powered dynamic pricing engine for enterprises.
Solvo.ai CEO and co-founder Gaurav Bajaj, says, “Logistics is a $5T industry and the backbone of global trade. But the disruption caused by Covid-19, trade wars, and the conflict in Ukraine has shown just how vulnerable supply chains are. With the accelerating impact of climate change, and pressures around the transition to net zero and sustainability, the future looks even more uncertain and complex.”
The reinforcement learning system developed by Solvo.ai, which is trained on actual logistics data, enables logistics professionals to make more educated decisions and adjust them over time in response to their shifting objectives. By including uncertainties into its models, the optimisation engine can quickly adjust to changing circumstances and help logistics organisations in recovering more quickly from disruption.
Co-founder Gaurav Bajaj, says, “Our ‘white box’ approach ensures decision makers get an ‘under the hood’ explanation of our AI recommendations. Our AI-driven workflows allow experts to make the right trade-offs by applying their judgment, value, and context to the recommendations our algorithms present.”
Brief about the lead investors
Speedinvest is an early-stage VC firm with offices in Berlin, London, Munich, Paris, and Vienna.
It has more than €600M AuM and 40 investors. The firm has backed 250+ businesses, some of which include Wefox, Bitpanda, TIER, Mobility, GoStudent, Wayflyer, CoachHub, Schüttflix, TourRadar, Adverity, and Twaice.
Frontline is the venture firm for B2B companies on both sides of the Atlantic. Frontline Seed speeds up ideas at inception across Europe. Frontline X is a growth-stage fund, for fast and frictionless US-Europe expansion. The company’s LPs and advisors represent senior leadership at many of the world’s most successful B2B companies such as Stripe, Looker, Linkedin, Airtable, Google, and Workday.