Silo Technologies, the frontrunner in modern technology solutions for the food supply chain, has recently announced a significant milestone with the completion of its $132 million capital raise. The company's successful Series C round, led by Koch Disruptive Technologies (KDT), a subsidiary of Koch Industries, has solidified Silo's position as a key player in the industry. Koch Industries is renowned for its expertise in supply chain logistics and its commitment to investing in disruptive technologies that challenge established norms.
Joining KDT in the funding round were esteemed investors such as Andreessen Horowitz, Haystack Capital, Tribe Capital, Collate Capital, and Moore Capital, who have already shown their confidence in Silo's vision and potential. With their support, Silo plans to continue its mission of offering a comprehensive fintech platform that provides financial solutions and data insights to distributors and grower shipper businesses operating in the perishable food supply chain.
Silo made waves last year when it introduced its working capital program, Instant Pay, which allowed its customers to manage and access working capital in an innovative way. The program was met with resounding success, gaining significant attention from industry players. Building upon this achievement, Silo has now partnered with First Citizens Bank to launch a new funding program called Cash Advance, which will provide an additional $100 million to empower supply chain businesses during economic downturns.
Brendon Durkin, Managing Director of Koch Disruptive Technologies, expressed enthusiasm for Silo's efforts, stating, "We're thrilled to be a part of Silo's journey to create a more efficient and sustainable food supply chain. What Silo is doing is impressive because they are providing actionable solutions in a complex, competitive market that bring immediate benefits to businesses using their products. Given the success they've had in perishable foods, we think there is an opportunity to apply their products to other supply chains and commodities. We're excited to see what they'll be able to do next."
Silo's comprehensive approach to addressing the needs of perishable food businesses has garnered praise from its growing customer base. For instance, three Miami-based distributors reported an average revenue increase of 350% within a year of using Silo Capital. This remarkable growth was facilitated by the seamless access to working capital through Instant Pay, which enabled them to capitalize on market opportunities.
Silo Finance, the company's innovative finance platform, plays a pivotal role in optimizing inventory and financial performance for businesses. By providing customers with a holistic understanding of their cash flow and financing, Silo Finance empowers businesses to make informed decisions. With the new funding and additional capital secured, Silo intends to further develop its platform, aiming to bring its comprehensive solutions to more businesses in the perishable food space.
Ashton Braun, CEO and co-founder of Silo, expressed gratitude for the diverse set of expertise brought by the company's investor base. "We're pleased to have built such a strong base of investors who bring a diverse set of expertise to the table. Koch Industries is one of the greatest supply chain companies. Adding KDT to the team validates what we're trying to achieve and brings additional supply chain expertise as we take Silo to the next level. Pairing that with the existing investor base, which has deep technical and fintech knowledge is very exciting as we expand our impact within the supply chain in 2023 and beyond," said Braun.
Anish Acharya, general partner at Andreessen Horowitz, emphasized Silo's track record of market-changing technology and services through its fintech platform. "Silo has also demonstrated market potential with its ability to piece together information that reduces risk for both its business and the businesses that back them, empowering more SMBs to have a larger seat at their industry table," added Acharya.
Silo Technologies' latest funding round marks a significant achievement for the company and highlights the industry's recognition of its groundbreaking solutions. With a strengthened financial position, Silo is well-equipped to revolutionize the food supply chain by equipping businesses with actionable insights, cost-effective capital, and connected solutions that enhance efficiency and profitability. As Silo continues to expand its reach and impact, it is poised to transform the way perishable food businesses thrive in today's competitive market.