Berlin-based startup Mercanis has raised over US$20 million in its series A funding round.

The round was led by new investors Partech and AVP, with participation from existing backers Signals.VC, Capmont Technology, and Speedinvest.

The company plans to use the funding to expand internationally, including into the US market.

Mercanis, founded in 2020, offers an AI-powered platform that automates procurement and contract management.

Its clients include major companies like BASF-Coatings, Goldbeck, Wilson, Brose, and GASAG.

The funding will also support technology improvements and global growth efforts.

🔗 Source: Mercanis

🧠 Food for thought

1️⃣ AI procurement startups are attracting substantial funding amid digital transformation wave

Mercanis’ $20 million Series A represents the continuing investor confidence in procurement technology, building on an established trend where procurement startups raised $1.9 billion across 356 companies as early as 20181.

The company has effectively doubled its total funding, having previously raised $10 million according to CB Insights data, indicating accelerating interest in procurement AI solutions2.

This funding pattern mirrors the broader AI investment landscape, where startups have historically attracted significant capital, with AI companies raising $10.7 billion in 2019 alone across various sectors3.

Mercanis’ reported metrics (40% process savings, 2.5x efficiency increase, 12x ROI) align with demonstrated outcomes from other procurement AI players, such as Suplari, which helped clients save $200 million in service costs and reduce software licensing fees by 33%4.

The procurement technology sector is increasingly competitive, with companies like Zip already deploying 50 specialized AI agents that have processed over 4.6 million AI insights resulting in $4.4 billion in enterprise savings5.

2️⃣ Geopolitical uncertainty drives adoption of AI-powered procurement solutions

Mercanis’ CEO explicitly references “geopolitical and economic uncertainty” as a key driver for adoption, a claim supported by research showing that geopolitical tensions significantly impact global procurement strategies through disrupted supply chains and trade routes6.