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-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: Globe Newswire

🧠 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.

Recent examples like the US-China trade war and sanctions on Russia have created real-world procurement challenges that technology solutions aim to address by improving visibility and responsiveness6.

Procurement leaders increasingly recognize that digital transformation is a critical priority during economic uncertainty, with technology solutions focused on cost reduction and operational efficiency7.

Multiple research sources confirm that companies are actively seeking solutions to build more resilient supply chains through diversification and digital transformation to navigate geopolitical complications8.

The procurement technology trend aligns with the broader push toward enhancing risk management capabilities, as companies adapt to an increasingly complex global trade environment affected by political instability, trade disputes, and regional conflicts9.

3️⃣ European AI companies strategically expanding to capture U.S. market share

Mercanis’ planned U.S. expansion follows a pattern seen across successful European startups that use Series A funding to enter the American market, seeking both customers and positioning for future funding rounds.

The Berlin-based company’s move comes at a time when global AI competition is intensifying, with China having previously captured 48% of global AI equity funding compared to the U.S. share10.

For procurement-focused AI companies specifically, the U.S. market offers access to Fortune 1000 companies that have been primary targets for similar solutions, as demonstrated by Suplari’s client acquisition strategy focusing on major enterprises4.

The expansion strategy reflects the maturing of Mercanis’ product offering, having secured notable German clients like BASF-Coatings and Goldbeck, and now seeking to replicate this success in the world’s largest enterprise software market.

The company’s modular platform approach, which allows for customization without coding knowledge, positions it to compete against established American procurement solutions that may be less flexible or require more technical expertise to adapt11.

……