PartsCloud Secures €5M to Modernize Spare Parts Logistics with AI Technology

German B2B tech startup PartsCloud has raised €5 million in a Seed funding round, boosting its total capital to €7.5 million. The round was led by Newion, with additional participation from MBG and SquareOne, signaling strong investor support for the company’s plans to bring efficiency and automation to the spare parts industry. The funding will be directed towards product enhancements and expanding into Asia, a key market for the company’s international growth strategy.

Spare parts logistics is often riddled with inefficiencies, as many companies continue to rely on outdated methods, including Excel spreadsheets and manual tracking systems. These outdated processes frequently result in overstocking, stock shortages, and unnecessary warehouse costs. Studies reveal that up to 80% of spare parts stored in factory warehouses remain unused, leading to significant financial losses and operational challenges for manufacturers. Recognizing this persistent issue, PartsCloud is focused on providing a comprehensive solution that minimizes waste and enhances inventory management.

The company’s AI-powered software is designed to improve inventory accuracy and reduce planning errors. Compared to traditional systems, PartsCloud’s platform already demonstrates a 30% lower error rate, which is a crucial factor in preventing disruptions in production lines and minimizing unnecessary expenses. With the newly acquired capital, the company plans to refine its predictive analytics and automation capabilities to further support businesses in optimizing their supply chains and reducing costs. As part of its broader strategy, the company will also integrate its solutions with existing ERP systems, allowing for seamless adoption without requiring heavy IT investments.

Founded in 2021 by Benjamin Reichenecker and Fabian Gemmecke, PartsCloud was established to address the practical challenges faced by manufacturing companies in managing their spare parts logistics. Reichenecker, who comes from an industrial engineering background, applied his experience from working with mid-sized manufacturers to create a solution tailored to the sector’s needs. The company’s platform offers an all-in-one approach, covering inventory planning, customs processes, and logistics operations. Unlike fragmented systems that require multiple software providers, PartsCloud centralizes these functions, simplifying the overall management process.

According to COO Fabian Gemmecke, the company offers a “worry-free package” that helps businesses overcome inefficiencies and maintain a consistent supply of spare parts globally. By automating critical processes, the platform enables manufacturers to allocate resources more efficiently, avoid stockouts, and reduce overstock-related expenses.

The funding round was led by Newion, a venture capital firm based in Amsterdam known for supporting early-stage software startups. The firm’s portfolio includes successful investments in companies like Collibra, Deliverect, and Parloa. Other key investors, MBG and SquareOne, bring additional expertise in supporting small and medium-sized enterprises as well as B2B technology companies.

With this fresh investment, PartsCloud is set to accelerate its product development and international expansion. As the company enters the Asian market, it aims to address a region where many manufacturers are looking to upgrade from manual processes to data-driven, automated solutions. By targeting a sector long dependent on traditional methods, PartsCloud is positioning itself as a driving force in the ongoing transformation of industrial logistics.