Xometry Inc., an online marketplace for custom-manufactured parts, has raised $15 million in a funding round led by BMW Group's venture-capital arm, the startup said Wednesday.
Continue Reading Below
The Gaithersburg, Md.,-based firm connects companies that need prototypes and custom parts with a network of domestic manufacturers and machine shops that can swiftly turn those orders around.
Xometry's software uses machine learning to generate instant price quotes and lead times for customers, then sends the job out to providers that its algorithm predicts can perform the work for that price. The company aims to streamline the process of ordering custom parts, which can typically take days.
Customers include BMW and General Electric Co., which is also an investor, as well as the National Aeronautics and Space Administration and smaller and mid-sized companies.
Xometry has raised $38 million since its founding in late 2013. The company generates about $20 million in annual revenue, said Randy Altschuler, Xometry's co-founder and chief executive.
This latest round includes new funding from existing investors GE Ventures and Highland Capital Partners. The investment will help the company add to its sales force and expand its online platform, including adding features make it easier for procurement teams to use, Mr. Altschuler said.
Continue Reading Below
Xometry now has hundreds of providers in its network and more than 5,000 customers in industries including aerospace, automotive and medical devices.
"Even companies as sophisticated as GE and BMW, their supply chains for these sizes of runs are limited," said Mr. Altschuler. "There is no central point for them to go to, no Amazon for custom manufacturing."
Xometry users upload 3D files and answer various questions, including how they want the part to be produced. The platform also factors in how the choice of materials and other design decisions will affect the cost and speed of production. Customers can change the quantity or the material, in real time and the price will update.
"You have instant transparency into what is this part going to cost me, and how will changes in material and the shape of the part affect that cost," said Zach Barasz, a partner at BMW i Ventures, which invests in technologies that could affect the carmaker's business. They include an electric-bus company and startups that make devices that print 3D parts. Mr. Barasz is joining the board of directors at Xometry, which makes fittings and fixtures for BMW.
Write to Jennifer Smith at firstname.lastname@example.org
(END) Dow Jones Newswires
June 28, 2017 09:44 ET (13:44 GMT)