London-based startup Magentic has secured $18 million in a Series A funding round led by Felicis, with participation from Sequoia Capital and The Westly Group. This investment brings the company's total funding to $23.5 million, following a $5.5 million seed round raised in July 2025.
Founded by Robin Van Aeken and Odhran O’Donoghue, the company developed an AI platform called Mages. The system integrates with internal corporate software, Microsoft Teams, and email to automate procurement tasks, including contract negotiations, invoice processing, and supplier selection.
The platform is designed to manage large-scale industrial operations, processing billions of data rows and handling over a million purchase orders annually for some clients. One manufacturer reportedly identified $4 million in savings using the software, which addresses supplier compliance issues that can account for 2% of total spending.
Magentic plans to use the new capital to expand its coverage of supply-chain workflows and invest in long-term AI research. The company enters a market projected to reach $21.3 billion by 2033, competing with other startups like Pactum, Freehand, and Didero in the procurement automation space.
