Omnea – an AI-based procurement orchestration and supplier risk management platform – announced it has raised $20 million in Series A funding to make procurement painless and give companies greater control over their spend. Accel led the funding round, with participation from existing investors First Round Capital and Point Nine, who led the previously unannounced $5 million seed round.
Omnea is also backed by angel investors such as David Clarke (former CTO of Workday), Claire Hughes Johnson (former COO of Stripe), and Anne Raimondi (COO of Asana). And this funding follows a hypergrowth year for Omnea, with the company’s revenue growing eightfold and impressive customer feedback on the platform’s user experience and business impact.
Many businesses find the procurement experience extremely challenging. Procurement has become increasingly decentralized, with legal, security, finance, ESG, and governance considerations to factor into every purchase in recent years. And it currently takes an average of six months and the involvement of upwards of 11 stakeholders for a tool to move from identification to final purchase.
This delay often pushes exasperated employees to disregard the procurement process, leading to unnecessary supplier risk and shadow IT. At the same time, the ongoing sprawl in tools and suppliers is creating wasted spend and inefficiency.
Technology companies have seen an average of 125 tier-one suppliers that usually need to be reviewed on an at least annual basis. This is a time-consuming manual process that is often neglected, leading to wasted money every year with unnegotiated contracts, missed renewals, and underutilized suppliers.
Omnea was launched in 2022 by Ben Freeman and Ben Allen to fix these frustrating and broken processes with a scalable and easy-to-use procurement platform in the global procurement software market. Having experienced the challenges surrounding procurement processes in his former role as US GM and Head of International Growth at cybersecurity leader Tessian, Freeman set out to change them.
He identified that companies would need to overhaul their existing procurement processes and the antiquated systems they currently rely on in a world demanding greater capital efficiency and more emphasis on risk and compliance. Omnea sits with these incumbent systems, including P2P systems like Coupa, SAP Ariba, and Netsuite’s procurement modules.
Omnea is a platform that holistically manages and automates a company’s full supplier lifecycle across both spend and risk management. And its platform increases the strength of a company’s spend controls by automating procurement processes through Omnea’s no-code workflows. Plus, Omnea ensures the process is easy to follow, meaning everyone involved – whether the requestor, legal, finance, information security, or IT teams – gets a custom experience and only has visibility of the information they need to review. This saves them time and money while preventing information security and compliance headaches.
With clients across Europe, North America, and APAC, Omnea already counts a number of industry leaders like AlphaSights, McAfee, Onfido, and TeamViewer as customers. And the leadership team consists of proven operators including Freeman’s former Tessian colleagues Sabrina Castiglione as CFO (formerly CFO of Tessian, COO of Pento) and Abhirukt Sapru as CCO (former CRO of Tessian). The company will use this funding to triple its headcount by the end of 2025, investing in both the R&D and GTM teams and opening US offices.
Along with the funding, Omnea is announcing expanded AI capabilities that further improve the employee experience of the procurement process. And the company is also rolling out a new suite of advanced third-party risk management features, so supplier risk can be automatically and continually assessed throughout the full supplier lifecycle.
KEY QUOTES:
“Procurement is fundamentally broken, making it one of the least-loved processes in businesses today. Finance and procurement leaders are fed up with seeing duplicative suppliers, missed renewals, and manually managed procurement processes. Omnea is meeting a critical need for companies of all sizes to get full control over their suppliers – not just in terms of spend, but also through the lens of information security and governance. We’ve seen significant early demand, and with our new AI capabilities and third-party risk management offering, we’re the only company in the space truly automating the full supplier lifecycle. We’re delighted to announce today’s funding so we can continue on our mission to take the pain out of procurement and supplier management once and for all.”
-Ben Freeman, co-founder and CEO of Omnea
“Business customers today are frustrated with traditional procurement software. Products are clunky and disjointed, generating numerous inefficiencies and unnecessary fees. We believe Omnea’s approach to procurement automation and orchestration is compelling and has the potential to redefine this multi-billion dollar category. It’s also exciting to partner once again with Ben, having gotten to know him and a number of the team well as a result of our early investment in Tessian. Having already attracted some of the UK’s most ambitious early-stage operators, we’re looking forward to seeing the Omnea team’s continued growth.”
-Sonali De Rycker, Partner at Accel
“Omnea has transformed how we manage procurement. We now have an intuitive front-door for all spend requests, the right people are automatically involved at the right time, and their orchestration layer connects all of our existing systems making the entire process seamless.The outcome is phenomenal.”
-Alex Pilsl, Chief Procurement Officer at Teamviewer
“Omnea’s UI/UX is best-in-market, and we evaluated plenty of systems out there. This is vital to drive maximum buy-in of Procurement as a strategic business partner in any organization.”
-Nick Priest, Global Head of Procurement at McAfee
Read More: Procurement Platform Company Raises $20 Million (Series A)