Sourceful, a supply chain transparency startup backed by Index Ventures, got off to a fast start nearly six months after announcing a $12.2 million seed round with a $20 million Series A. The latest growth is again led by the index, which also includes Kotue and Eka Ventures.
The startup, founded in 2020, is working with brands to reduce the environmental impact of their product sourcing options in areas like packaging by offering a market of trusted sourcing. The startup also takes care of logistics and handles the purchase and delivery of goods for brands (including a little storage if they need it) – earning money by charging a commission on the total cost.
Sourceful has decided to focus on packaging in its first attempt to help brands reduce supply chain emissions due to the ubiquity of the problem. (Packaging decisions require less time-consuming brand approvals than environmentally friendly redesigns of real products.)
The startup is building a packaging design interface into its platform so brands can experiment with design changes and see in real time how those choices affect their respective carbon footprint, helping them reduce emissions.
As we spoke last time, he has received ISO (International Standards Organization) certification for his Life Cycle Assessment (LCA) methodology, which helps clients understand the carbon footprint of their products’ supply chain – a development that investors believe will enable an increasingly global character. scaling support.
Danny Rimmer, partner at Lead Investor Index Ventures, said in a statement: “Supply chains are one of the biggest sustainability barriers in the world, but they also represent one of our biggest opportunities to reduce global emissions.
“Sourceful is at the forefront of efforts to reduce the environmental impact of supply chains by using experience, data and artificial intelligence to give companies choices and transparency they have never had before. Following Sourceful’s recent ISO audit, we are confident that the brand can truly go global and partner with the world’s largest companies to help build the sustainable global economy of tomorrow.”
Sourceful has around 30 customers since the platform launched in the first quarter, but it is expected to grow significantly from then on.
The Series A funding will continue the platform’s expansion into international markets and increase its presence in Europe, Asia and the Americas – with plans to double the size of the 65-member team over the next two years.
The company also plans to develop four new product categories, including integration into the plastics lifecycle assessment platform. (The other three packaging sectors it will add are recycled plastics, with dynamic pricing and LCA calculations expected to be integrated into the platform by the end of April, as well as glass and plastic options.)
The quote points to the UK plastic packaging input tax from April 1st, which means that some companies
The landmark UN resolution, signed earlier this month, also committed signatories around the world to end plastic pollution: Develop a national plastic waste prevention action plan and report on progress.
“As we created the product, we became increasingly aware that there was an opportunity to help all parts of the supply chain, including manufacturers, their suppliers and all network partners who are involved in the creation of the product. Digitizing the supply stream has huge benefits for a lot of parties,” Wing Chan CEO and co-founder gaming-updates said, explaining why he turned into venture capital so quickly after an already heavy seed fell. – Growth (though commensurate with the magnitude of the supply chain reform challenge).
“We are also building a company that fights greenwashing in a country where marketing regulation and consumer protection are still limited. We are not taking short cuts and have chosen to travel less when it comes to investing in certification, supplier and material research, and the data science needed to deliver reliable results,” he adds.
Chan says Sourceful is increasingly targeting e-commerce companies that prioritize sustainability, suggesting that this trend “is only going to pick up immediately with increased government regulation and consumer pressure.”
“We also work with young companies, because in today’s world, all new brands must remain consistent at the center of their work,” he says.
While noting that fewer packaging design choices can lead to significant emissions reductions, Sourceful says the data shows companies can cut their carbon footprint in half by choosing base materials and adhesives such as gummed tape.
Choosing self-adhesive tape can reduce your environmental impact by up to 20%.
Whereas, shipping boxes can be customized to reduce their associated carbon emissions by up to 12%, such as using custom packaging to reduce empty space and the need for online packaging to reduce the need to provide samples.
Overall, Sourceful reports that consumer industries represent three of the four most polluting sectors, accounting for about 35% of global emissions, 83% of which come from their supply chains. So there is no lack of driving efficiency.
The startup pointed out that e-commerce packaging in particular has a negative impact on the environment as online sales are growing at 15% per year, claiming there is little information or data on production and production. A source Sourceful hopes the content platform can change.