Atomic Secures $12.5M Series A to Automate Supply Chains

Supply chain startup Atomic, founded by ex-Tesla team members, raises $12.5 million in Series A funding to enhance its AI-driven inventory management platform.

Atomic, a supply chain startup founded by former Tesla employees, has raised $12.5 million in a Series A funding round. The round was led by growth equity firm Klass Capital and Seattle-based Madrona Venture Group, according to TechCrunch. This latest investment brings Atomic's total funding to over $15 million.

The startup has seen significant growth, with its annual recurring revenue increasing fivefold since the beginning of the year, as reported by Jon McNeill, a former Tesla president and founder of DVx Ventures, where Atomic was incubated.

Atomic's platform uses AI to optimize inventory management by simulating scenarios and recommending or automatically making decisions on inventory levels and locations. This technology was initially developed during the 2018 Model 3 production ramp at Tesla, when traditional spreadsheets were insufficient for the rapidly changing planning needs.

The platform has transitioned from pilot to real customers, including large tech companies like DoorDash and HelloFresh. For instance, DoorDash reportedly uses Atomic's software to manage 90% of its purchasing across hundreds of sites, reducing waste and spoilage, according to TechCrunch.

Atomic's software is designed to be adaptable across various industries, including consumer packaged goods, mobility, and manufacturing. The company's ability to quickly deploy its platform with new customers was a key factor in attracting Series A investment, as noted by CEO Michael Rossiter.

The startup has also expanded its leadership team by appointing Jeff Goodrich, a former Tesla planning director, as its CTO and third co-founder. Atomic aims to move supply chain management from traditional spreadsheets to advanced AI-driven software, enhancing decision-making speed and efficiency.