Vamstar closes $9.5m funding to expand AI-enabled healthcare supply chain platform

Vamstar, the AI-enabled global sourcing and procurement platform for medical supplies and pharmaceuticals, has closed $9.5m Series A funding round.

Alpha Intelligence Capital (AIC) and Dutch Founders Fund (DFF) led the round, which also included existing investors btov Partners and Antler.

Vamstar will use this investment to accelerate market and product development plans, deploying artificial intelligence (AI) to enhance its consumables and generics exchange platform, improving data quality for faster e-commerce, and digitising procurement and sourcing processes for both buyers and suppliers across the industry.

The company was founded in 2019 by industry veterans Praful Mehta, Richard Freeman and Vishesh Duggar to tackle the problem at the root of sourcing and procurement transformation failures: data integrity and user engagement. Vamstar combines functionality for streamlining healthcare sourcing and procurement processes by using machine learning, deep learning and natural language processing to connect billions of data points across the supply chain network, provide real-time market intelligence, and enable digital commerce through a common e-procurement platform.

“We see a tremendous opportunity in a market that is largely underserved for the Vamstar platform to organise the procurement system in the healthcare industry,” said Terry Chou, partner at Alpha Intelligence Capital.

“Healthcare supply chains are under tremendous pressure with ongoing crises like COVID-19, the war in Ukraine, and rising inflation,” said Mehta. “There is very little data available to help healthcare procurement managers and suppliers make decisions in real-time. At Vamstar, our goal is to empower supply chain professionals, clinicians, hospital administrators and their suppliers to collaborate in innovative ways to create meaningful relationships. It is only by enabling a shared vision for collaboration, fueled by better data and insights, that we can deliver greater value for all stakeholders and the wider community within the healthcare ecosystem.”

Vamstar connects both buyers and suppliers electronically to automate transaction and process flow across the supply chain on a global scale. The platform is used by businesses and organisations connecting suppliers, such as pharmaceuticals, consumables, medical devices, and digital technology companies, with public and private buyers, such as hospitals, laboratories, health insurances, clinics, corporations, universities or group purchasing organisations (GPOs).

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