Freehand Secures $75 Million to Automate Enterprise Procurement and Payments

A significant investment in AI technology has been made by Freehand, a company that specializes in automating enterprise procurement and payments. The startup announced on Wednesday (July 29) that it had raised $75 million in funding, with Battery Ventures and NewRoad Capital Partners co-leading the round.

The funds will be used to further develop and deploy Freehand’s AI platform, which has already been adopted by major corporations such as Meta, Unilever, Johnson & Johnson, Dunkin’, Pfizer, and Cardinal Health. The platform uses AI agents to automate procurement, supplier management, invoicing, and payments within enterprise systems.

The AI agents can negotiate rates with suppliers, enforce contracts, manage suppliers, process payments, and reconcile data within the system. This has resulted in measurable improvements for companies that have deployed the platform, including savings of 5% to 10% on complex categories, completion of workflows five to seven times faster, and a reduction in procure-to-pay cycles by over 70%. Additionally, companies are able to redeploy teams and wind down outsourcing.

According to Nitin Jayakrishnan, co-founder and CEO of Freehand, the AI agents ‘decide, act, and take accountability for outcomes.’ This approach has allowed companies to achieve significant cost savings and streamline their workflows. Abhijeet Manohar, co-founder of Freehand, noted that by building software that is the user, rather than just building software for users, they can drive deeper transformation for customers.

The latest funding round was welcomed by investors who believe in the potential of AI to transform enterprise procurement and payments. Dharmesh Thakker, General Partner at Battery Ventures, stated that Freehand’s agents have ‘enterprise context’ which enables them to make decisions and take actions, unlocking millions in savings for enterprises. Gregoire Lehmann, partner at NewRoad Capital Partners, added that Freehand is well-positioned to become the category leader in AI-native supply chain spend management.

The use of generative AI in procurement efficiency has gained significant traction among enterprises, with 73% now using or considering its adoption according to a recent PYMNTS Intelligence report. Larger enterprises are driving this trend, particularly those generating over $10 billion in revenue.