Boston startup Atomic raises $12.5 million — TechCrunch

Boston-based startup Atomic, which develops artificial intelligence software for supply chain management, has raised $12.5 million in a Series A funding round. Total investment in the company has exceeded $15 million, TechCrunch reports.

The round was led by investment firm Klass Capital and venture fund Madrona Venture Group. Atomic also hired Jeff Goodrich, who previously spent a long time as Tesla's director of planning, as chief technology officer and its third co-founder. He joined CEO Michael Rossiter and Chief Product Officer Neil Suidan.

AI-powered inventory planning

Atomic's software models different scenarios to determine the required inventory levels and where they should be placed. The system can suggest courses of action or make decisions independently. According to Rossiter, artificial intelligence can find optimal options when supply chain parameters are constantly changing.

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The founders created an early version of the system while working at Tesla in 2018, when the automaker was ramping up production of the Model 3. At the time, the company's spreadsheets could not keep up with rapid changes in production planning.

Customers and procurement automation

Atomic's customers include DoorDash and HelloFresh. For companies working with food products, the platform helps reduce losses and spoilage. The company also works with consumer goods manufacturers, as well as clients in the mobility and manufacturing sectors.

According to John McNeill, founder of DVx Ventures and a member of Atomic's board of directors, the startup's annual recurring revenue has increased fivefold since the beginning of the year. He also said that DoorDash uses Atomic for approximately 90% of procurement across hundreds of locations. According to him, the system can identify the decision-making rules used by clients' employees, even if those rules have not been formally documented.