Stemly, a Singapore-based SaaS platform that helps businesses lower their working capital and financing costs, has raised US$2.5 million in a seed financing round.
Backers include Elev8, ING Ventures, EDB New Ventures, and several other undisclosed investors.
With an industry average forecasting error of more than 27 per cent, companies face a massive impact on working capital needs.
As per a McKinsey study, at least one company in 20 has suffered a supply-chain disruption costing at least US$100 million due to global disruptions every year in the past several years.
Stemly was launched in 2018 within ING Labs Singapore (an incubator) to address the gap in decision intelligence that exists in supply chain operations and finance.
For example, it may take three weeks or more to respond to market changes in consumer behavior which results in overstocking and loss of sales.
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Powered by autonomous Machine Learning technology, Stemly aims to enhance the decision-making capabilities of enterprises by demystifying data science and delivering impactful business outcomes. Its platform also automates forecasting and optimisation of a company’s supply chain and finance processes.
Stemly currently comprises a team of 20 spread across Singapore, India, Indonesia, Ireland, and Australia.
Following the spin-out, the startup will be an independent entity and continue to work closely with ING.
“We are helping businesses save 10 to 40 per cent of their cost of inventory and working capital — the equivalent of tens of millions of dollars in some cases — by embedding automatic machine learning in their forecasting and optimisation applications. We have already signed on several leading MNCs as clients; with this investment boost, we are confident of growing faster,” said co-founder Giuseppe Manai.
“Global supply chains are undergoing a fundamental shift in capacity and in complexity. Stemly’s autonomous machine learning platform for the demand and cash flow forecasting has the potential to meaningfully improve operating efficiencies in enterprises of all sizes. We are excited to support Sanjay and Giuseppe’s vision of an AI-assisted supply chain,” added Elev8’s founder Aditya Mathur.
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Image Credit: Stemly
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