INTERVIEW: Microsoft-backed FarEye sees a trillion dollars in wasted costs across the global supply chain
- Within the lockdown months,
FarEyesaw a spike in usage, expanded internationally and most recently raised $13 million following a raise of $24.5 million in April.
- In an interview with Business Insider, Amit Bagga, Chief Revenue Officer, FarEye shares the company’s unique position for growth.
- Some of FarEye’s current clients are DHL, Amway, Hilti, Walmart, Domino’s and Zomato.
This Microsoft-backed seven-year old startup offers predictive analysis in the logistics sectors – where it gives its clients visibility over demand and buying trends. It works across channels – from manufacturers to retailers. Some of FarEye’s current clients are DHL, Amway, Hilti, Walmart, Domino’s and Zomato.
Within the lockdown months, FarEye saw a spike in usage, expanded internationally and most recently raised $13 million in funding, closing the round where it raised $24.5 million in April.
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FarEye saw a month-on-month 180% increase in usage during the lockdown months as it enabled B2B (business to business) and B2C (Business to consumer) last mile delivery.
“The sector in which we operate is currently digitized to less than 10%, so there is a race for the rest 90%. We want to separate out in the play where the SAPs, Oracles operate. The last mile market is reported to be $55 billion by 2025, our aim is to be in the top 4 players in the market and for that you need just 5% of the market,” Amit Bagga, Chief Revenue Officer, FarEye told Business Insider.
As businesses began to take stock of the impact of the pandemic, they had to find ways to be conservative about their spending, ensure rapid business transformation, and that products are delivered at home. And Bagga says that there’s a trillion dollars of wasted cost that they can take out of the supply chain. “That’s the pie we are after,” he said.
So, it’s not surprising that the startup has got big money backing it – Microsoft’s M12 fund, The Fundamentum Partnership, the growth-capital fund backed by Nandan Nilekani and Sanjeev Aggarwal and KB Global Platform Fund, one of the leading investment firms of Korea.
“It’s key for a company like Microsoft to basically build partnerships with people who will become category kings and with Fareye, it's a very strategic alliance. Microsoft wants to become the platform that leads digital transformation and everywhere you go you will need that optimization in logistics. With technology, that’s 50% of your supply chain costs right there that can be cut down to drive profitability,” said Bagga.
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A recent report by PwC on revival and growth, housed the supply chain as one of the key sectors for the economy’s revival. And at FarEye the early signs of recovery are seen. “We have seen about 80% of the pre-COVID engagement resurface back. We are now participating in 3-4 times the global RFPs (Request for Proposals) than we were in April,” he said.
And they are also doubling down on hiring and expansion. The 11-year old startup has already added 12% to its headcount of 400 and is expanding “exponentially” into the US and European markets.
AdvertisementWhile Bagga didn’t disclose their revenue details, he said they are eyeing 200-300% growth year-on-year.
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