Sequoia, Index Back German Supply Chain AI Startup Tacto (1)

Sequoia Capital and Index Ventures led a €50 million ($54 million) funding round for German startup Tacto Technology GmbH, whose software helps businesses optimize their supply chains.

Tacto uses AI to enable companies to identify cost savings by analyzing pricing of key costs, like raw materials and energy. This approach can cut procurement spending by about 10%, Tacto’s Chief Executive Officer Andre Petry told Bloomberg.

The Munich-based Tacto, founded in 2020, markets its software to the so-called Mittelstand — small and medium-sized companies that form the backbone of the German economy, accounting for almost 60% of jobs. The investment ...