NORTHAMPTON, MA / ACCESSWIRE / January 23, 2024 / Koch Industries
Koch Disruptive Technologies (KDT) has led a $32 million Series C round in Silo, the leading provider of modern technology solutions for the supply chain.
- Silo's platform enables distributors and shipper businesses to access financial solutions and data insights, such as accounts payable and accounts receivable automation, inventory management, ledger accounting and financing.
WHY IT MATTERS: A 2023 PwC survey found that while 86% of respondents said their organizations should invest more in technologies that identify, track and measure supply chain risk, only a minority said they're using them to automate and enhance performance.
- Silo employs several AI models to assess a business's risk and detect anomalies during the funding process and to various components of the perishable supply chain, including underwriting, product taxonomy, document extraction and fraud detection.
- "Once Silo was in the payment flow, we could pair the data collected from our software with payments products to both underwrite and collect better than any bank," said Ashton Braun, CEO and co-founder of Silo. "This is the basis for a number of new services Silo is working on within supply chain finance, logistics coordination and internal workflow automation."
WHY KOCH INVESTED: "What Silo is doing is impressive because they are providing actionable solutions in a complex, competitive market that bring immediate benefits to businesses using their products," said KDT Managing Director Brendon Durkin. "Given the success they've had in perishable foods, we think there is an opportunity to apply their products to other supply chains and commodities. We're excited to see what they'll be able to do next."
WHAT THEY'RE SAYING: "We're pleased to have built such a strong base of investors who bring a diverse set of expertise to the table. Koch Industries is one of the greatest supply chain companies. Adding KDT to the team validates what we're trying to achieve and brings additional supply chain expertise as we take Silo to the next level. Pairing that with the existing investor base, which has deep technical and fintech knowledge is very exciting as we expand our impact within the supply chain in 2023 and beyond," Ashton said.
- In an interview with TechCrunch, he explained Silo's ongoing impact: "These financing programs are helping small- and medium-sized businesses within perishable supply chains scale their operations, find stability in a rapidly consolidating landscape and compete at a level that has historically been set aside for only the elite, larger businesses within the industry. Leveraging a combination of data insights and access to additional working capital, through financing, gives companies the confidence to execute on market opportunities that give them a stronger seat at a rapidly consolidating table."
IN ACTION: Their customers have seen impressive results, including three Miami-based distributors who experienced a 350% increase in revenue after a year of using Silo Capital and its "Instant Pay" program.
GO DEEPER: Others participating in the round included existing investors Andreessen Horowitz, Haystack Capital, Tribe Capital, Collate Capital and Moore Capital.
- It's also coupled with another $100 million from First Citizens Bank to launch a new funding program called "Cash Advance" to accelerate Silo's growth of financial services solutions and product development.
Read more about Silo in TechCrunch.
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SOURCE: Koch Industries
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