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Estonian AI firm SkySelect raises $9m for parts sourcing
SkySelect is an Estonian-founded AI aircraft-parts procurement platform and said it had secured US$9 million in funding to expand its AI sourcing and procurement optimization tools.
Airlines hold about US$50 billion in excess parts inventory, the company said.
Its AI matches part requests with over 3,000 suppliers.
The company has processed over US$6 billion in transactions since launch.
SkySelect said recent clients include JetBlue, Sun Country Airlines, Air Transport Services Group, Wideroe, and Vueling.
The funding round was co-led by Verb Ventures and RockCreek, with participation from SmartCap Green Fund (funded by the European Union’s NextGenerationEU) and existing investors Bain Capital Ventures and Lux Capital, and the company said proceeds will be used to enhance its AI sourcing and procurement optimisation tools and hire across product development, data science, and customer success in the US, India, and Estonia.
🔗 Source: SkySelect
🧠 Food for thought
Implications, context, and why it matters.
A severe engine shortage is making parts more valuable than entire aircraft
- An engine crunch is driving interest in AI tools for aircraft-parts buying, beyond routine cost cutting.
- Problems with Pratt & Whitney’s Geared Turbofan (GTF) engines have grounded about one-third of the GTF-powered Airbus fleet, tightening supply for engines and repair parts 1.
- Scarcity has pushed values so far that the two engines on a nearly new Airbus A321neo can cost more than the working jet 1.
- The secondary parts market now acts as what industry insiders call a “critical lifeline,” so platforms such as SkySelect help teams cope with price swings and keep aircraft flying 1.
AI gives insurgents an edge in a fragmented multi-billion dollar market
- SkySelect’s funding aims to grow share in the global aviation e-marketplace, valued at $7.1 billion in 2024 and projected to reach $20.4 billion by 2033 2.
- Competition remains scattered. Boeing-owned Aviall (a large aircraft-parts distributor) and PartsBase (a parts search and procurement platform) compete for carrier demand 2.
- Carriers account for over 45% of end users in one estimate 2.
- SkySelect is leaning on AI to automate sourcing and improve procurement decisions 3.
- Niche AI platforms can help newer firms pressure incumbents in legacy industries by handling supply chain risks that older systems cannot manage.
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