London-based AI startup Magentic has raised $5.5 million in pre-seed funding from Sequoia Capital, First Momentum, and Westly Group to scale its platform of autonomous AI agents for procurement and supply chain operations. Built by former engineers and consultants from OpenAI and McKinsey, Magentic’s intelligent agents — known as “Mages” — embed directly into enterprise workflows to identify contractual discrepancies, enforce supplier agreements, and recover lost value.
Targeting a $40 million annual value leakage per $2 billion spend, Mages analyze fragmented systems and documents to surface actionable savings opportunities and automate follow-through. Fortune 500 manufacturers using Magentic report projected recoveries of $10–20 million per year, with no upfront costs.
Magentic’s platform integrates directly with existing software and secures enterprise-grade compliance, offering SOC 2 Type II and ISO 27001 certifications. With this funding, the company aims to expand deployment across global enterprises, transforming procurement from a fragmented cost center into an AI-augmented strategic engine.
Featured image: Credit: Magentic
