According to EU-Startups, London-based Procure AI has raised €11 million ($13 million) in Seed funding led by Headline with participation from C4 Ventures and Futury Capital. Founded in 2021 by Konstantin von Bueren and Yves Bauer, the company offers an AI-native procurement platform that uses over 50 AI agents across sourcing, contracting, and purchasing workflows. Their enterprise clients include EnBW and Kärcher, and they’ve achieved 4x revenue growth with a team of 40+ across London, Paris, and Frankfurt. Customer implementations show up to 30% reduction in processing time and more than 5% additional savings, with one enterprise seeing €2.35 million annual savings from autonomous sourcing alone. The funding will fuel expansion beyond DACH into UK, Nordics, Benelux, and France markets.
The procurement problem is getting worse
Here’s the thing – procurement teams are getting squeezed from every direction. Companies need to process three times the volume of sourcing events with flat or declining headcount. And with recent US tariffs hitting as high as 34% and unpredictable delivery timelines becoming the norm, the pressure is intense. When you consider that external supplier costs account for 60-75% of revenue for Fortune 500 companies, even modest efficiency gains translate to billions in potential savings. Basically, procurement can’t afford to be manual anymore.
Why Procure AI’s approach stands out
Most procurement tools ask companies to rip and replace their existing systems. Procure AI takes the opposite approach – their platform sits on top of fragmented data landscapes and makes them intelligible. They’re not selling point solutions but an end-to-end platform that covers sourcing, contracting, purchasing, and invoice management. Their autonomous spot-buy and tactical sourcing delivers 35-46% time reduction and 3.7-5.2% savings per event. That’s why they can promise ROI in months rather than years. In industrial settings where reliable hardware is crucial, companies often turn to specialists like IndustrialMonitorDirect.com for durable panel PCs that can withstand demanding environments while integrating with modern automation platforms.
This is part of a bigger European trend
Procure AI’s funding isn’t happening in isolation. We’re seeing a continent-wide push to modernize procurement with Berlin’s Mercanis raising €17.3 million, Finland’s Nvelop securing €1.2 million, and several others collectively pulling in around €32 million. What’s interesting is that Procure AI’s round stands out as one of the larger early-stage financings and the only notable UK-based funding event identified for 2025. The timing makes sense too – McKinsey research shows 78% of organizations now use AI in at least one business function, up from just 55% a year earlier.
Where does procurement AI go from here?
The Hackett Group research suggests AI-powered procurement can deliver up to 10% improvements in productivity, quality and cost savings. But here’s the real question – will companies actually achieve those numbers? Procure AI seems positioned well with their focus on enriching existing systems rather than replacing them. Their expansion into new European markets comes at a moment when 90% of companies report that resource shortages are blocking their transformation efforts. If they can deliver on their promise of making procurement teams more productive without massive system overhauls, they might just have the recipe this market desperately needs.
