Supply chain startup Magentic raises £13m led by Felicis with Sequoia Capital
This article covers Magentic, a supply chain startup that has raised £13m in a growth funding round led by Felicis, with participation from Sequoia Capital and The Westly Group. The funding will accelerate its roadmap for autonomous AI agents, expand coverage across procurement and supply chain workflows, and support longer-horizon research into complex optimisation problems to aid procurement teams and large manufacturers.
Magentic, a supply chain startup that builds AI digital workers for procurement and manufacturing teams, has raised £13 million in a growth funding round led by Felicis, with participation from existing investors Sequoia Capital and The Westly Group. The funding will be used to accelerate the company’s roadmap for autonomous AI agents, expand coverage across procurement and supply chain workflows, and deepen long-horizon research into complex optimisation problems.
Why it matters
Manufacturers are wrestling with rising demand, trade friction and tight budgets while sitting on fragmented data and legacy enterprise resource planning systems. Magentic’s pitch is to automate end-to-end procurement work inside those systems, where even small efficiency gains scale into meaningful savings for large enterprises. For procurement teams facing flat budgets and growing workloads, tools that reduce manual hours and improve data quality could materially affect procurement outcomes and capex decisions.
Inside the product
Magentic deploys multi-agent AI “digital workers” that run continuously inside customers’ environments. The agents integrate with Microsoft Teams, email and a client’s internal systems and are designed to take ownership of workflows — from deciding whether to buy or build, selecting suppliers and negotiating contracts, to running orders and clearing invoices. The platform is built to handle billions of rows of data and tens of billions of pounds of spend while leaving humans in control.
The company says its customer base includes Global 500 firms and three of the world’s ten largest beverage companies. Typical outcomes reported are 2–5% savings, a 60% lift in data quality and tens of thousands of hours of manual work removed. One customer reportedly routes more than one million orders a year through Magentic’s agents; another has identified $4 million in savings. For security-sensitive deployments, Magentic offers zero-data-retention agreements with major AI providers, cloud-agnostic deployment and secure, isolated options in specific data regions.
Who are the investors?
The round was led by Felicis, with Sequoia Capital and The Westly Group participating as existing backers. Felicis is taking the lead on this financing as Magentic moves from early commercial traction to scaling its product across larger procurement and supply chain footprints.
In the announcement, Feyza Haskaraman, Partner at Felicis, said:
Bringing frontier AI to the physical world requires pushing beyond AI systems with limited context windows. We're building AI that can diagnose problems, plan the fixes, take action, and see work through across gigabytes and terabytes of multimodal data at once.
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Founder perspective
Magentic was founded by Robin Van Aeken and Odhran O'Donoghue, alumni of McKinsey and OpenAI respectively, and launched in July 2025. The team operates from London and New York. The founders position the product as focused on one of the economy’s least glamorous but most consequential domains: supply chains.
In the announcement, Robin Van Aeken, Co-founder & CEO at Magentic, said:
Supply chains are the least glamorous part of the economy, yet the most consequential, deciding what gets built and what does not. That's also what makes them so hard to automate. Getting an agent to understand a manufacturer's complex systems well enough to take action inside them is no small feat, which is why we haven't seen anyone else build autonomous AI workers for the physical economy.
The new capital will fund product development and longer-horizon AI research into optimisation problems that matter for procurement and supply chain operations.
The bigger picture
The company’s timing intersects with forecasts of heavy AI-driven capital spending and ongoing supply chain stress. Goldman Sachs projects roughly $8 trillion in AI capital expenditure between 2026 and 2031, much of it tied to physical infrastructure that must be sourced, built and managed. Procurement teams have seen workloads increase by about 10% year on year while budgets rise only around 1%, creating pressure to automate.
Magentic’s approach — embedding autonomous agents into existing enterprise systems rather than replacing them — targets a practical route to automation for large manufacturers. If the reported savings and scaleability hold up across more customers, tools like this could shift where companies invest to extract value from AI in operations.
The deal also underscores continued UK activity in enterprise AI. With founders based in London and New York and a lead investor willing to back deep technical work, Magentic’s raise is another sign that UK-founded teams are attracting capital to tackle industrial problems across Europe and beyond.
They've invested in Magentic
Get to know these supply chain investors
| Investors | Investment Focus | Startup Investments | Round Size | Connect |
|---|---|---|---|---|
 Felicis Ventures( ) Felicis Ventures invests in a diverse range of companies across various stages, ... Menlo Park, US  | ||||
 Sequoia Capital( ) Sequoia Capital specialises in investing in daring companies within technology s... Menlo Park, US | ||||
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