Manufacturing process management platform Factory.app has raised $1.05 million in a Seed round led by early-stage VC Investible.
The two-year-old Sydney software startup was also backed by TechnologyOne founder Adrian DiMarco, 1in100 Ventures, Beachhead Venture Capital, and Hugo-Hamman Investments.
Serial entrepreneur Richard Hugo-Hamman, CEO of the legaltech firm The LEAP Group, along with HotelsCombined cofounder Brendon McQueen, originally backed Factory.app’s angel round.
This second capital injection will support the startup’s ambition to digitalise the manufacturing sector, with plans to rapidly expand in Australia, then scale globally.
Brothers Paul and Michael Lutkajtis founded Factory.app in 2021 after identifying the need for a more cost-effective and streamlined software process for fabricators to create, track and manage jobs.
Factory.app gives small-to-medium sized fabricators simplified solutions. designed to fit their needs straight ‘out of the box’, bridging the gap between basic accounting packages such as MYOB and Xero, and enterprise resource planning (ERP) tools.
Paul Lutkajtis said Factory will continue to build out its functionality “at an affordable price”, to disrupt the ERP market for SME manufacturers.
“Coming from the industry, we were literally living the same pain of manual processes and constant double handling that our customers face every day,” he said.
“With 90% of the manufacturing industry being made up of similar-sized businesses to our own family-business, we knew we could deliver huge value to thousands of companies globally by leveraging our own experience to build a software platform that feels fit for purpose.”
Lutkajtis says Factory.app’s rapidly growing customer base see considerable efficiency gains within days of signing up, with some businesses experiencing a 30% reduction in inbound and outbound customer service calls after implementing the platform’s automated customer updates.
“We don’t charge for developing what customers want – we make our product work best for everyone,” he said.
Investible principal Jayden Basha said: “Paul and Michael have their finger on the pulse of this oft-underserved industry, and have begun to carve out a unique platform for smaller businesses to thrive.”