Gembah Secures $11 Million In Funding To Democratize Product Innovation
Gembah secures $11 million in funding to democratize product innovation
The mission statement of Gembah is deceptively straightforward. According to the Austin-based company, it aims to "democratize product innovation" by significantly lowering the barriers to entry for new product development. At the very least, it is comparable to the numerous startup initiatives that have emerged over the last decade, ranging from crowdfunding to additive manufacturing.
The company's product is a platform/marketplace that guides users through the product development process, with the promise of results in "as little as 90 days." To assist in expediting the process, the forum connects smaller businesses with factories, supply chain experts, designers, and engineers. Simply ask anyone who has attempted to launch a hardware startup how difficult it can be to navigate these waters.
Gembah has raised a $11 million Series A round led by local firm ATX Venture Partners, with participation from Silverton, Flexport, Brett Hurt, Jim Curry, and Dan Graham.
It comes on the heels of a $3.28 million seed round led by Silverton announced in April, bringing the company's total funding to $14.75 million.
Impact of Pandemic
According to the company, the pandemic has actually benefited its business model, as hardware startups increasingly gravitate toward an online model — and something a little closer to home than traditional sales channels. According to the company, revenue increased 500 percent in 2020 and is on track to triple this year. It's remarkable growth in the face of several significant supply chain issues that have plagued the industry over the last year and a half.
It currently has 300 active customers but has yet to achieve profitability, which is why the new round was necessary. “Because the majority of our customers are e-commerce businesses, we benefited from e-rapid commerce's growth,” CEO and co-founder Henrik Johansson tells TechCrunch. “Supply chains have been impacted to varying degrees, but as the global supply chain becomes more complex and many companies seek diversification outside of China, they require assistance in navigating that transition, which Gembah can provide.”
The funding will be used to expand the engineering team at the company. Gembah currently employs 55 people in the United States and 19 in other countries, including Asia and Mexico. The additional staffing will be directed toward expanding the marketplace, supply chain workflow, and machine learning capabilities. Gembah will also look to expand its global network and expand its marketing and UI/UX teams.
“Gembah is a true innovator poised to assist businesses in capitalizing on the global eCommerce growth,” Chris Shonk of ATX Venture Partners said in a statement. “By enabling a new breed of creators to enter the market, the Gembah marketplace has the potential to unlock virtually unlimited entrepreneurial equity.”
