Orderful, an integration platform for electronic data interchange for the logistics and supply chain sectors, announced Wednesday that it has raised $15 million in a funding round led by NewRoad Capital Partners. This investment will support Orderful’s goal of streamlining EDI integration and enhancing data connectivity across the industry.
New investors included 9Yards, Flume Ventures and NFI ventures, joined by existing backers Andreessen Horowitz and GLP Capital Partners. The company last raised funds in 2021, closing a $19 million Series B, raising $47 million to date.
Orderful aims to simplify how companies share data by providing a fast, reliable platform that minimizes the traditionally slow and complex nature of EDI.
EDI has long served as the backbone of data exchange between businesses. It allows companies to automate processes like purchase orders, invoices and shipment notifications, removing the need for manual entry and reducing errors. Traditional EDI, however, can be cumbersome, often requiring custom code, high fees and weeks of onboarding.
Orderful’s solution relies on application programming interface integration, which is simpler and faster. APIs offer a direct line of communication between systems, enabling quick data exchanges without the need for customized connectors for each trading partner.
This API-based approach allows clients to integrate with their trading network through a single connection, reducing setup time from several weeks to less than two.
“From the beginning, we saw the potential in Orderful’s vision to modernize EDI. Their progress has been incredible, and we’re excited to see how they will continue to innovate and lead in this space,” said David Ulevitch, general partner at Andreessen Horowitz, in the release.
Addressing EDI challenges with AI
Orderful is now using AI to simplify the error-prone aspects of EDI.
Erik Kiser, founder and CEO, explained how AI-based rules built into Orderful’s platform tackle issues like data misalignment, helping users resolve complex data transformations almost instantly.
“A common use case would be if the partner requires [the term] CS for cases and the sender sends CA for a case,” Kiser said in an email. “Orderful’s API rules will automatically suggest the transformation from CA to CS. It also solves problems like date formatting, removing data that isn’t required and moving data around to match the partner’s requirements. Typically this takes hours to resolve for a particular partner. With AI rules, our customers solve these problems in seconds.”
This error-handling not only saves time but also cuts costs for clients, who no longer need dedicated EDI teams to address these common issues.
“Orderful has been a critical partner in helping us streamline our EDI processes,” said Dave Broering, president of Integrated Logistics at NFI, in the release. “Their platform has enabled us to be more agile and responsive, giving us a significant competitive advantage.”
The $15 million growth round positions Orderful to further enhance its platform and meet the increasing demand for streamlined EDI solutions. The capital will support the development of products geared toward small and midsize businesses, allowing them to adopt EDI without high costs or complex onboarding. Orderful’s recently launched Web EDI Fulfillment product is central to this initiative, enabling SMBs to sign up and start trading without needing direct sales interactions.
“Two initiatives that are underway are around our entry into providing a non-integrated experience for SMBs,” said Kiser. “We are currently supporting top 5 major retailers with their vendor EDI onboarding and we will continue to make EDI fast and easy for retail. We’re also really excited to announce that we’re the first EDI provider in the world to release a self-service experience for SMBs.”
As part of the funding announcement, Gregoire Lehmann, principal at NewRoad, will also join as a board member, while Josh Jewett, a former chief information officer at Family Dollar and Dollar Tree, will act as a board observer.
“Orderful is fundamentally changing the way companies trade EDI,” Lehmann said in the release. “Their approach to simplifying EDI is a game changer. We like to invest in companies with strong domain expertise that are solving big legacy problems and delivering on what they promise to the market. Orderful exceeds expectations in all of these areas.”
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