Last Updated: 18 September 2026
Magentic is an AI company that builds digital workers for procurement and supply chain teams at global manufacturers. Its AI agents, called Mages, work inside existing company systems to analyze spending, contracts, orders and invoices, identify savings opportunities, route purchases, check supplier terms and recover overpayments. Magentic serves large enterprises in sectors including consumer goods, industrial and manufacturing, covering both direct and indirect spend. Founded by Robin Van Aeken and Odhran O'Donoghue in July 2025, the company operates from London and New York.
Magentic announced an $18 million Series A. Felicis led the round, while existing investors Sequoia Capital and The Westly Group also participated. The financing comes roughly one year after Magentic publicly launched its platform.
The funding comes as companies prepare to spend heavily on the physical infrastructure needed for artificial intelligence. Goldman Sachs Global Institute estimates that about $7.6 trillion could be invested between 2026 and 2031 across computing equipment, data centers and power infrastructure under its baseline scenario. That spending creates more sourcing, supplier management and operational work for companies building and running this infrastructure.
Magentic plans to use the new capital to expand its AI agents across more procurement and supply chain processes. The company also plans to invest in longer term AI research focused on more complex optimization problems in industrial operations.
Procurement has become one area where companies are beginning to use agentic AI, which refers to artificial intelligence systems that can plan and complete several steps of a task. Gartner expects spending on supply chain management software with agentic AI capabilities to rise from less than $2 billion in 2025 to $53 billion by 2030. It also expects 60% of enterprises using supply chain management software to adopt these capabilities by then, compared with 5% in 2025.
For large procurement teams, the challenge is partly the volume and fragmentation of information they must manage. Companies can work with thousands of suppliers, contracts, orders and invoices spread across databases and older enterprise software. McKinsey said in February 2026 that procurement teams are handling growing volumes of data, geopolitical disruption, supply shocks and administrative workloads, while information often remains divided among separate systems. That makes automation harder to manage.
“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.”
Feyza Haskaraman, Partner at Felicis
The Series A will support further development of Magentic's AI agents and increase the number of procurement and supply chain workflows they can handle. Product development is the main focus. The company also plans to continue research aimed at helping its systems deal with more complex operational problems.
Part of that work involves making the agents useful across large and fragmented company systems. Magentic says its technology is built to work with large datasets and existing tools rather than requiring manufacturers to replace their current software.
Security is another part of the company's development plans. Magentic says its controls include zero data retention agreements with major AI providers, deployment in different cloud environments and isolated deployments that can be hosted in specific data regions. These options are aimed at large companies that need more control over where their information is processed and stored.
Magentic's digital workers are multi agent systems designed to handle operational tasks across procurement and supply chains. They can help companies decide whether to buy or build something, identify suppliers, support contract negotiations, manage orders and process invoices. The agents work inside existing company tools. They can operate through Microsoft Teams and email as well as within a company's own systems.
The technology is designed for companies dealing with very large volumes of information. Magentic says its systems can work across billions of rows of data, tens of billions in spend and older enterprise systems where information may be divided across several tools.
According to the company, one customer processes more than one million orders each year through its agents, while another has identified $4 million in savings. Magentic says customers typically record savings of 2% to 5% and a 60% improvement in data quality. Those figures are reported by the company and have not been independently verified.
“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 the work through across terabytes of multimodal data at once.”
Odhran O'Donoghue, CTO and co-founder of Magentic
The Series A brings Magentic's publicly announced funding to at least $23.5 million. Before the new round, the company announced a $5.5 million financing in July 2025 backed by Sequoia Capital, First Momentum and The Westly Group. That earlier funding was intended to support development of its AI agent platform for procurement and supply chain teams.
Felicis joined the investor group by leading the new $18 million Series A. Sequoia Capital and The Westly Group returned as existing investors. Felicis describes Magentic as part of its AI applications portfolio and says the company is developing digital workers for manufacturing, supply chain and finance teams.
The investor group now includes firms that have backed companies across enterprise software, artificial intelligence and industrial technology.
