Freehand Raises $75 Million for AI-Driven Supply Chain Spend Automation

Enterprise AI startup Freehand has announced a $75 million Series B funding round, co-led by Battery Ventures and NewRoad Capital Partners, with participation from Nexus Venture Partners and former U.S. Commerce Secretary Penny Pritzker. This latest funding brings Freehand's total capital raised to $100 million, following a $25 million Series A in March 2024.

CEO and co-founder Nitin Jayakrishnan stated that the valuation represents a significant step up from their previous round. The funding comes at a time of increased strain on traditional supply chain outsourcing models due to tariffs, taxes, and geopolitical shifts. It also aligns with a surge in venture funding for supply chain and logistics-related startups.

Founded in February 2024 by logistics veterans Nitin Jayakrishnan and Abhijeet Manohar, Freehand aims to disrupt enterprise back-office operations. Their prior experience co-founding Pando, a transportation management system, highlighted the potential for AI to automate complex financial governance and procurement processes.

Unlike spend management platforms focused on corporate cards and travel, Freehand's AI agents target complex supply chain expenditures. The software operates within existing enterprise systems, analyzing contracts, policies, and emails to verify invoices, track milestones, and negotiate with vendors autonomously.

Freehand serves approximately 50 customers, including Meta, Johnson & Johnson, Pfizer, and Cardinal Health. Its platform processes billions in payments across numerous currencies and countries without human intervention. The company claims its technology can recover 5-10% of total spend, accelerate operational workflows five to sevenfold, and reduce procure-to-pay cycles by over 70%.