Startup News: CognitOps raises $11 million Series A funding
Offers software which uses artificial intelligence (AI) software to automate and improve decision making for frontline managers responsible for running warehouses and fulfillment centers
CognitOps, a provider of artificial intelligence (AI)-based warehouse operating applications, announced today that it has raised $11 million in a Series A round of financing.
FirstMark Capital led the investment round, with all of the company’s major investors participating, including Chicago Ventures, Schematic Ventures, Haystack, and CEAS Investments. Beth Ferreira, Partner at FirstMark, will join the CognitOps Board of Directors.
“CognitOps is tapping into a clear market need and is off to an explosive start,” says Beth Ferreira, a general partner at New York City–based firm FirstMark Capital. “We believe they are at an inflection point to unleash the potential of the modern distribution center by leveraging artificial intelligence and data science at scale. The supply chain disruptions of the past 18 months have highlighted the pain points in the warehouse and have emphasized the market need for new, innovative solutions. CognitOps has only just begun to revolutionize warehouse operations and we are thrilled to be partnering with the team.”
“We’re humbled by FirstMark’s conviction in our vision, and we’re excited to welcome Beth to our team,” said Alex Ramirez, Co-founder and CEO of CognitOps. “Beth’s unique combination as a former operator at Fab.com and Etsy, along with her expertise in the capital markets are going to be accelerants to our growth.”
CognitOps will use the funds to expand internationally, increase sales capacity, and expand product development. Although global supply chains have invested over $10 billion in warehouse management solutions (WMS) over the past five years, operators are still struggling to adapt to labor shortages, accelerated service levels, and disrupted supply bases, according to CognitOps. The CognitOps platform empowers supply chain leaders to make better, faster decisions to manage complexity, reduce cost, and improve cycle time without the need to upgrade or replace their existing investments.
“We continue to be amazed by the number of Fortune 500 and small-and-medium-sized businesses that manage their warehouses with Excel spreadsheets and tribal knowledge,” said Reas Macken, Co-founder and Chief Product Officer of CognitOps. “Empowering frontline warehouse managers to make decisions confidently is the first step to resiliency, and our solution delivers the needed data, insights, and actions to help them do so.”
“The margin for error in supply chain operations is contracting quickly,” says Peter Christman, board member and partner at Chicago Ventures. “Leading brands are actively investing in more flexible, efficient digital infrastructure, which has proven to drive higher operating margins. CognitOps is the trusted change agent for these organizations, helping turn supply chain into a source of competitive advantage.”
The round occurs after raising seed funding of US$3 million in the second quarter of 2020 and a record year of growth. CognitOps grew 600% in new clients across multiple industries and global regions. CognitOps also expanded within existing clients and created a global presence with pilot engagements in the UK and new partnerships in Latin America.
CognitOps is also announcing a new global HQ in Austin, TX, located at 21 E 7th S, Austin, TX, and a software development center in Kyiv, Ukraine.
