Xometry Inc., a digital manufacturing marketplace used by thousands of companies ranging from small machine shops to global manufacturers, has continued to ramp up its services during the COVID-19 pandemic. In addition to helping manufacturers configure new products like personal protective equipment, it has also been expanding how companies can place and finance online orders.
And there is much more to come, Xometry’s executives say, thanks in part to a $75 million infusion of venture capital it received last week, bringing its total funding to $193 million.
“This funding will enable us to continue to accelerate our business through investments in our software platform, new products, and other initiatives,” CEO Randy Altshchuler said when announcing the funding last week.
Expanding online marketplace services
Bill Cronin, chief revenue officer, says forthcoming improvements will add to the kind of services Xometry introduced earlier this year, including a new Visa-branded Xometry Advance commercial card program designed to help manufacturers improve their cash flow and acquire the manufacturing materials they need; and the ability for engineers and designers to submit 2-dimensional as well as 3D computer-aided design files to request quotes from Xometry’s manufacturing partners.
Since introducing the new 2D file service, which makes it easier for companies to submit multiple bids for manufacturing projects, Xometry has seen an uptick in new customers on its marketplace, he says.
Cronin adds that, as the pandemic has disrupted supply chains, Xometry is seeing more demand for its 3D-printing and other forms of digital manufacturing services that companies can order on Xometry.com instead of building new or expanding existing factory space.
“The adoption of distributed manufacturing across industries is accelerating,” says Andrew Davis, director of private investments at T. Rowe Price Associates Inc., which led the $75 funding round. “Xometry’s agile digital marketplace helps both the Fortune 500 and smaller businesses meet their production requirements. Xometry has the right team, the right technology at the right time to build a strong, global scale manufacturing business.”
A new CFO with IPO experience
Xometry also announced that Jim Rallo has joined the company as chief financial officer. Rallo previously served as chief financial officer and president of Liquidity Services, an online business-to-business liquidation marketplace for various industries, leading the company’s initial public offering in 2006.
Xometry hosts more than 4,000 participating small manufacturers and machine shops—which it calls its manufacturing partners—that provide such manufacturing services as 3D printing and CNC machining to thousands of buyers, including product designers and engineers from businesses ranging from startups to such major manufacturers as General Electric Co. and automaker BMW AG. (GE and BMW are also investors in Xometry.)
Also participating in the recent funding round were newcomers Durable Capital Partners LP and ArrowMark Partners and prior investors BMW i Ventures, Greenspring Associates, Dell Technologies Capital, Robert Bosch Venture Capital, Foundry Group, Highland Capital Partners and Almaz Capital.
Cronin will participate in a panel of B2B online marketplaces at this month’s B2B Next conference.
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