Didero Leverages AI to Transform Supply Chain Management for Mid-Market Companies

Supply chain management continues to pose significant challenges for mid-market companies that can't afford enterprise-level solutions like SAP or lack the IT resources needed to navigate complex systems. In response, early-stage startup Didero has developed an AI-driven tool designed specifically to simplify these processes.

Today, Didero announced a successful $7 million seed funding round, marking its emergence from stealth mode and the official launch of its product.

“We are building a comprehensive toolkit that empowers procurement teams to effectively manage their suppliers across various niche markets,” said Tim Spencer, product lead and co-founder.

This suite of tools facilitates finding suppliers, negotiating contracts, managing purchase orders, generating invoices, and processing payments. Additionally, it offers robust analytics and streamlines supplier management tasks.

Spencer emphasized the importance of AI for mid-market companies that often lack extensive resources. “Unlike larger corporations that can dictate terms to suppliers, smaller companies need AI to automate many of these essential tasks,” he explained. “Before the advent of AI, automating these processes was nearly impossible.”

Didero leverages multiple AI models, including OpenAI and Google Gemini, tailoring each to specific tasks as needed. “We’re utilizing existing foundational models and APIs rather than creating new ones; however, we do fine-tune these models for our unique requirements,” said Tom Petit, the company’s CEO.

Moreover, the team has developed several specialized models to extract crucial procurement data from documents such as tables, purchase orders, and price lists.

Spencer and co-founder Lorenz Pallhuber bring extensive supply chain expertise to the table. Spencer previously managed procurement at Markai, a startup he co-founded, while Pallhuber advised Fortune 500 clients on supply chain and procurement strategies during his seven years at McKinsey. Petit, who possesses a strong technical background in AI and machine learning, also co-founded Landis, a startup that secured over $200 million to assist renters in navigating mortgage processes.

Launched in December, Didero has been diligently enhancing its product ever since. The recent $7 million seed round, led by First Round Capital and joined by participants such as Construct Capital, AI Grant, Box Group, Company Ventures, and Conviction, is set to propel the company’s growth further.