London's Magentic Raises $18M Series A to Build AI Agents for Procurement

London-based Magentic has raised $18 million in Series A funding to expand its AI agents for enterprise procurement and supply-chain operations.

The round was led by Felicis, with Sequoia Capital and The Westly Group also participating. The latest funding brings Magentic's total capital raised to $23.5 million just 14 months after its launch.

AI agents for enterprise procurement

Magentic was founded by Robin Van Aeken, CEO, and Odhran O'Donoghue, CTO, who first met while participating in hackathons at Oxford.

Van Aeken previously worked as a supply-chain consultant at McKinsey, while O'Donoghue has a machine-learning PhD and experience at OpenAI, NASA, and the Francis Crick Institute.

The company's main product, Mages, connects with manufacturers' email accounts, Microsoft Teams, internal systems, and legacy enterprise resource planning platforms.

Rather than simply analyzing procurement data, Mages is designed to act on it. The agents can help determine whether a company should buy or build, select suppliers, negotiate contracts, place purchase orders, and process invoices.

Handling billions of data rows

Magentic says its platform can operate across billions of data rows, tens of billions of dollars in spending, and legacy systems that still rely heavily on Excel.

One manufacturer is reportedly using Magentic to handle more than one million purchase orders annually. Another customer identified $4 million in savings that the company's human teams had previously overlooked.

The company says supplier compliance issues can create significant procurement losses. Its research cites McKinsey's estimate that such "leaks" can amount to around 2% of total spending.

Expanding beyond procurement automation

Magentic operates in an increasingly competitive AI procurement market alongside companies such as Pactum, Freehand, and Didero.

The company is positioning Mages around broader procurement workflows, covering decisions from buy-versus-build through direct and indirect spending and invoice reconciliation.

The new funding will be used to expand coverage across procurement and supply-chain workflows and support AI research focused on complex optimization problems.

Magentic launched in July 2025 with a $5.5 million seed round backed by Sequoia Capital, The Westly Group, First Momentum Ventures, and angel investors from SAP, Airbus, McKinsey, and Hugging Face.