Simfoni partners with industry-leading consulting expert Kearney to advance revolutionary composable tail spend management solution and service delivery model
SAN FRANCISCO, June 5, 2023 /PRNewswire-PRWeb/ -- Simfoni, the next-generation digital solutions provider for procurement intelligence and tail spend management, today announced a Series A-2 investment round with Kearney, a global leader in management consultancy, to enable more efficiency and cost management for Kearney's clients. This investment will help further advance the strategic partnership between these two organizations while accelerating the broader delivery of a turnkey tail spend management solution that features a pay-as-you-save pricing model, making this the most accessible tail spend management program in the market. This move is part of Kearney's broader strategy to invest in leading technology solutions that help clients navigate complex business challenges and achieve digital procurement transformation and sustainable growth.
Traditionally tail spend is undermanaged due to an organization's large number of low-volume transactions, fragmented supply base, and poor user experience for everyday spend. This leads to inefficiencies and expenditures that can be 8% to 13% higher than they would be with more competitive sourcing.
Simfoni's spend management platform provides powerful AI-enabled spend analytics, sourcing, optimization, spend automation, and payment consolidation to help clients identify savings opportunities, optimize complex sourcing and procurement processes, and deliver on the user experience. Kearney provides a rigorous approach to program management, ensuring strategic analysis of tail spend segmentation to sustain results and provide a positive ROI year over year.
"Kearney is thrilled to partner with Simfoni to provide our clients with access to the most comprehensive digital procurement solutions in the market," said Alex Liu, managing partner and chairman, Kearney. "We are confident our clients will benefit from improved visibility and increased efficiencies as they continue to regenerate their business models and performance."
The combined capabilities of Kearney and Simfoni will create the most advanced tail spend management solution currently on the market. The Kearney–Simfoni solution provides:
- A human-centric user experience for frontline managers through executives, that works with companies' current technology—avoiding disintegrated systems and eliminating the need for offline workarounds
- A pay-as-you-save model with fees hard-wired to usage and actual savings
- Payment consolidation and vendor management, which reduces the burden on procurement and accounts payable teams to manage the high volume of tail vendors and payments
- Easier ESG compliance, with opportunities to systematically prioritize target suppliers, including minority-owned and eco-certified categories
- A global/regional presence with sourcing operations close to users and supply markets
"Partnering with Kearney is an exciting opportunity for us to expand our reach and ensure we can offer our spend management capabilities in the most complex and largest of enterprise situations," said Chirag Shah, CEO of Simfoni. "By combining our technology and tail spend expertise with Kearney's distinctive, agile approach to strategic consulting, operations, sustainability, and governance, we can broaden the scope of our delivery of a comprehensive procurement solution that drives truly impactful outcomes for our clients."
Also participating in this investment round is existing Simfoni investor PeakSpan Capital, a growth-stage private equity firm that led the $15M Series A investment with Simfoni in 2021.
"We are excited to continue our partnership with Simfoni," said Jack Freeman, Investment Partner at PeakSpan Capital. "We have been very impressed with the company's progress since our initial investment and are confident in their ability to drive continued innovation and growth in the tail spend management market. We are also very excited to welcome Kearney as a fellow strategic investor."
Simfoni provides Spend Analytics, Spend Automation and eSourcing solutions to leading global enterprises. The Simfoni platform utilizes machine learning and artificial intelligence to accelerate and automate key aspects of the procurement and sourcing processes, saving customers time and money and paving the way toward supply chain sustainability. With offices in the USA, Europe, Australia, and the Middle East, Simfoni works with its customers and the wider vendor community to improve vendor diversity and achieve strategic CSR (Corporate Social Responsibility) objectives. For additional information, please visit http://www.simfoni.com.
Kearney is a leading global management consulting firm. For nearly 100 years, we have been the trusted advisor to C-suites, government bodies, and nonprofit organizations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we help our clients break through. To learn more about Kearney, please visit http://www.kearney.com.
About PeakSpan Capital
PeakSpan Capital is a growth equity firm based in New York City and San Mateo. Having partnered with over 30 high-growth software businesses and with $1.5B+ in AUM, PeakSpan's mission is to be the partner of choice for growth stage entrepreneurial teams who are building amazing software targeted at business buyers of all sizes. PeakSpan combines deep domain expertise within a select number of themes with a homegrown, proprietary technology platform providing visibility into company and market performance, to help disruptive entrepreneurs drive resilient, risk-adjusted value creation. To learn more about PeakSpan Capital and its portfolio, please visit: http://www.peakspancapital.com.
Megan Hamner, Simfoni, 1 2036769252, [email protected]