Xometry Inc., an online marketplace for on-demand manufacturing, has grown substantially since it launched in 2014; it now connects thousands of manufacturers with more than 10,000 customers including BMW AG and General Electric Co.
With $50 million in new venture funding it announced today, bringing its total to-date to $113 million, Xometry is ready to kick off a new growth spurt, CEO Randy Altschuler says. “We’re planning to invest these funds behind growth initiatives, product development and global expansion,” he says.
Growing in an $80 billion market
The funding is from Greenspring Associates and Dell Technologies Capital, with participation from earlier Xometry investors. “Xometry has quickly become a key player in the $80 billion custom manufacturing market,” says Hunter Somerville, general partner for Greenspring Associates, who will join Xometry’s board.
The Xometry Manufacturing Partner network has grown over the past two years to more than 3,000 participating manufacturers that provide on-demand manufacturing services to a base of more than 10,000 customers, up from fewer than 5,000. Xometry doesn’t release its revenue figures, but notes that it has doubled its revenue over the 12 months. Its participating manufacturers provide such services as 3D printing, sheet metal fabrication and other forms of custom manufacturing. Xometry’s customers range from startups to major corporations and large government agencies, including carmaker BMW, diversified manufacturer General Electric Co., the United States Army and NASA, the National Aeronautics and Space Administration. BMW and GE are also investors in Xometry.
Xometry, which last year became a tier-one supplier of critical components to BMW, attributes its success in large part to its development and use of artificial intelligence and machine learning software that helps it match requests from buyers of manufacturing services with the most appropriate manufacturer in its network based on capability and availability.
A buyer on the Xometry marketplace, such as a BMW engineer, can upload a 3D computer-aided design model of a product it needs manufactured into Xometry’s online quoting engine, choosing several criteria including the manufacturing process, the material such as aluminum or polycarbonate, and the type of metal finish or other special treatments. Within minutes, Xometry uses its own data on the manufacturing costs to quote a price.
AI for engineers and designers
Xometry then forwards the customer’s order to a manufacturer in its network that its software platform recognizes as most suitable and available; the manufacturer then decides whether to accept the order.
“Xometry’s vast network, massive data sets and AI breakthroughs make it easier for engineers and designers to buy custom manufacturing and help manufacturers more efficiently operate their businesses,” Altschuler says. With its new funding, it will further develop its technology and expand into new markets, Xometry says.
“Xometry is yet another example of how machine-learning-based intelligent software is driving huge efficiency gains across many different industries,” said Daniel Docter, managing director at Dell Technologies Capital. “We look forward to helping Xometry expand into new verticals that leverage the expertise of Dell Technologies.”
Altschuler tells B2BecNews that Xometry expects to grow in such industries as aerospace and defense. “We see strong demand for service and spare parts,” he says.
Earlier this year, Xometry launched Xometry Supplies, a marketplace where manufacturers in Xometry’s network can purchase materials and tools used in their manufacturing work.
Greenspring’s other investment portfolio companies include data center technology provider Cologix, B2B marketing technology firm Demandbase, and Salsify, a provider of product information management and related technology applications.
Dell Technologies Capital, the investment arm of Dell Technologies, has invested in such companies as Barefoot Networks, a provider of software for operating computer networks; FogHorn, a developer of artificial intelligence software for industrial and commercial internet-of-things applications; and Edico Genome, a provider of data analysis technology for genome sequencing, which was acquired last year by Illumina Inc.
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