The End of the Silo

Today’s featured startup is quietly rebuilding the supply chain from the inside out.

Project Overview

Today’s startup emerged seemingly out of nowhere — and immediately raised $33 million from respected VC firms. Naturally, that made me want to dig in and figure out why.

LightSource is a platform that streamlines direct sourcing from manufacturers anywhere in the world.

Their mission: to “illuminate the global supply chain.” The platform serves both buyers and suppliers.

• Buyers can easily search for suppliers, check up-to-date pricing and delivery terms, and get AI-powered insights to make smarter procurement decisions.

• Suppliers can respond to incoming buyer requests and discover new sales opportunities.

LightSource’s features fall into two main buckets:

1. Sourcing simplification:

   Buyers get full visibility into everything happening across their supply chain. That includes a dashboard of open RFQs with decision deadlines, an AI-powered comparison engine to assess supplier bids, a calendar of ongoing supplier communications, and a real-time tracker for existing orders.

2. Collaboration and communication tools:

   Buyers and suppliers can exchange pricing/terms requests, respond directly in the platform, and keep conversations organized by supplier and project. There’s also an AI assistant to help quickly retrieve info or answer common questions.

LightSource already claims thousands of customers, including Yum! Brands, Shure, and Hello Fresh. Since early last year, more than 1,000 shipments totaling over $1 billion have passed through the platform. In just 18 months, their revenue has grown 10×.

What’s the Gist?

One of the more interesting things is what LightSource doesn’t want to be.

• It’s not a clunky 2000s-era procurement automation tool. Their goal isn’t just to digitize — it’s to give buyers superpowers.

• It’s also not about squeezing suppliers for the “best” terms at all costs. Instead, the focus is on win-win outcomes through streamlined processes and better communication.

LightSource describes itself as a “digital room” — a space where buyers and suppliers can collaborate efficiently. This mirrors a growing trend in B2B: dedicated digital collaboration spaces. Another startup following this model is Aligned, which builds digital rooms for buyers and B2B product teams. Aligned recently raised $8 million in new funding to expand its approach.

Aligned

According to Gartner, by 2026, 30% of all B2B deals will take place not through sales reps, but inside these kinds of digital rooms — which reduce friction for buyers while keeping the process human.

This is part of a larger shift. What was once a slow-moving, old-school procurement function is now going digital fast — opening the door for a new generation of platforms across the supply chain.

Some key data points:

• Forrester reports that digital procurement platforms can reduce supply cycle times by 48%, giving companies a serious competitive edge.

• KPMG estimates that AI can automate 50% to 80% of procurement tasks. LightSource is a bit more conservative on those numbers — but agrees that’s the direction we’re headed.

• Forrester predicts a move from AI assistants (helping humans) to AI agents (operating independently), even in edge cases. That would free up procurement pros to focus on more strategic decisions.

• Gartner also forecasts a shift where procurement becomes a core competency across roles — not just a siloed function. Sales reps or store managers could soon handle sourcing directly, with AI doing the heavy lifting.

Of course, we’re not quite there yet. A McKinsey survey shows 66% of chief procurement officers believe full AI adoption is still years away. But LightSource suggests the pace of change might surprise even the skeptics.

Key Takeaways

Procurement may be conservative — but it’s also big. The digital procurement platform market is already worth $8.6B in 2024, and it’s expected to grow to nearly $20B by 2033.

The most exciting part? That growth is expected to come largely from new platforms — the ones that embed AI from the ground up.

This opens a clear path: building modern, AI-native sourcing platforms that disrupt the long-standing status quo.

A key idea here: procurement is evolving from a job function to a company-wide competency.

That means future platforms can empower non-procurement teams — like marketers, salespeople, or store managers — to handle sourcing themselves. As long as the platform can match their constraints on pricing, delivery, and product specs, they won’t need to rely on procurement departments at all.

And that could completely reshape the market.

Company info:

LightSource

• Website: https://lightsource.ai/

• Last funding round: $33 million, 15.04.2025

• Total funds raised: $33 million after 1 round