Magentic AI platform Secures $5.5M For AI-driven Savings In Tariff-hit Supply Chains

Supplier compliance issues are common, with 90% of Chief Procurement Officers calling them a major problem. These issues can waste around 2% of total spending—$40 million on a $2 billion budget. One company using Magentic found errors in 25% of its procurement documents, showing how much money can be lost without proper checks.

Magentic was founded by Robin Van Aeken, a former McKinsey leader for global manufacturing, and Odhran O’Donoghue, a machine learning PhD from Oxford who worked on AI projects at OpenAI, NASA, and the Crick Institute. The team combines strong AI skills with deep procurement knowledge.

Robin Van Aeken, co-founder and CEO of Magentic, said: Supply chains are the hidden engines of our world, responsible for every phone, medicine, plane in our lives. Procurement teams are at breaking point, spending hours navigating unstructured information, ever more complex demands, and now global conflict and tariffs.

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Magentic offers plug-and-play AI agents designed specifically for procurement and supply chain tasks. These AI teammates work within existing systems to find and capture savings—even when data is messy or incomplete. For instance, a $30 billion manufacturer cut spare parts costs by 4% and is now using Magentic for more categories.

Odhran O’Donoghue, co-founder and CTO of Magentic, said: For the first time, we have the technology to understand all our data across previously incompatible systems. At Magentic, we’re motivated by the question: how can complex companies deploy trustworthy, reliable systems capable of following company playbooks to improve outcomes for their suppliers and their customers.

Sequoia Capital led the round, joined by The Westly Group, First Momentum Ventures, and angel investors from SAP, Airbus, McKinsey & Company, Hugging Face, Ironclad, and Rosberg Ventures.

Julien Bek, Sequoia Capital Partner, said: Today, the best AI companies are selling outcomes not seats. In the old world, SaaS sold the promise of ROI. In the new world, AI actually delivers it. That's why we're proud to partner with Robin, Odhran, and the team at Magentic - their AI 'Mages' work seamlessly alongside procurement and supply chain teams to drive immediate P&L gains and we can't wait to see the impact they deliver as they continue to build.

Magentic works with companies in consumer goods, pharmaceuticals, and advanced manufacturing across the US and Europe. Its AI teammates help challenge supplier tariff claims, find new savings, and manage operations—while keeping humans involved in key decisions.

About Magentic

Magentic-One is a powerful multi-agent AI system built for complex, multi-step tasks. Its modular design allows flexibility, easy upgrades, and strong performance. It has outperformed benchmarks like GAIA, AssistantBench, and WebArena, proving its capability across various real-world and technical challenges.