Stuttgart, Germany-based SPARETECH, a data platform for industrial spare parts, announced on Thursday that it has raised €10M in a Series A round of funding.
The round was led by New York-based software investor Insight Partners with participation from Headline and existing investors.
The company says it will use the funds to scale internationally.
Martin Weber, CEO of SPARETECH, says, “Spare parts management is one of the most overlooked factors for competitiveness and sustainability in manufacturing. SPARETECH envisions an industrial zero-waste sharing economy. Transparency and high-quality data also lead to less wasted resources in spare parts procurement, transportation, and scrapping. This has a direct impact on the end user’s price and on CO2 emissions.”
What does SPARETECH solve?
Manufacturing companies worldwide are facing immense pressure from all sides.
The stability of their once reliable supply chains is now threatened by unpredictable geopolitical developments, labour shortages, escalating material costs, higher interest rates, and stricter lending standards.
To address these challenges, companies must invest in new technologies that provide innovative ways to control expenses and increase efficiency.
Unfortunately, the market for industrial spare parts remains underdeveloped and often relies on outdated, customised methods such as Excel spreadsheets or even traditional pen-and-paper approaches.
Here’s where SPARETECH comes into play!
SPARETECH: Spare parts management
Founded in 2018 by former Porsche engineers Martin Weber and Dr. Lukas Biedermann, SPARETECH offers verified spare parts data intelligence and the necessary software to transform these insights into tangible improvements.
Dr. Biedermann, CCO of SPARETECH, says, “We found that factories have 15% duplicates and 17% obsolete parts in their spare parts inventory across their global production network. This results in increased purchasing costs, high inventories, and expensive machine downtimes that harm their competitiveness.”
The company’s intelligent matching algorithms are designed to spot data inconsistencies, duplicates, and obsolete materials in the company’s material master.
Once identified, this data is then enriched, harmonised, and alternative supply options are highlighted, making it easier to make informed decisions.
The company’s platform enables maintenance teams to manage spare parts inventory efficiently and procurement departments to gain visibility into suppliers.
The German company claims to have helped over 120 global manufacturing companies, including Bosch, Nestlé, Porsche, Yanfeng, and Airbus Helicopters.
SPARETECH’s existing investor team consists of Headline and the Plug and Play Tech Center. In addition, there are prominent angel investors such as Christian Gaiser, Carsten Thoma, Christian Reber, and Frederik Pfisterer, together with Insight Partners.
What do investors say?
Teddie Wardi, Managing Director of Insight Partners, says, “We are deeply impressed by SPARETECH’s cost efficiency and strong revenue growth over the past year. When talking to customers, they cite a clear return on investment after implementing SPARETECH. Six of its top 10 customers upsell within a few months.”
“SPARETECH’s exceptional customer feedback and strong net retention rate in 2022 are outstanding. We are excited to join the SPARETECH team on its mission and look forward to partnering with SPARETECH on the next phase of growth,” adds Wardi.