Supply Chain Startup Felux Raises $5.1 mln In seed funding

By Nicholas Say Nicholas Say has been verified by Muck Rack's editorial team
Published on August 30, 2021

Felux, a supply chain startup, raised $5.1 million in a seed funding round led by Expa with participation from other investors like 8VC and Lightbank.

Founded in 2019 and headquartered in Cleveland, Ohio, Felux provides the fastest-growing B2B marketplace and supply chain platform for the steel and industrial industry. The startup will use this new funding to innovate in the traditional $1 trillion steel industry with a new approach to steel trading, connecting buyers with sellers and managing their supply chains.

With the goal of creating a transformation to the online steel industry, Felux supports direct connection for both suppliers and buyers with a large number of new potential customers, while providing technology to manage sourcing and procurement, thereby driving logistics, financing, and payments in the marketplace. To further explain the company’s operations, Felux Co-Founder and CEO Dallas Hogensen said:

“The era of digitization in the steel industry has arrived. Over the last 12 months, we have been working tirelessly building tools for the industry to help suppliers and buyers get their inventory and catalogs online, manage logistics and get access to best-in-class financing rates. Because of this, we have been able to create a consumer-like purchasing process for an extremely complex transaction and offline industry. As a result, we are seeing more frequent transactions from our customers, suppliers are getting larger margins on deals and buyers are finding new suppliers with better pricing even with the global supply chain crunch and rising steel prices that the industry is facing.”

Today, with most inventory in a legacy state, paper and pdf documents have greatly reduced the ability to create a seamless buying experience with customers. As a result, low visibility on prices, inventory levels, and reliance on pre-existing customer relationships that create large price disparities in the market have put companies in a difficult position.

Felux has become increasingly popular as it has grown rapidly over the past months, having successfully supported over $90 million in trades in the past 1 year and has a huge and diverse clientele from 1,500 locations, 500 companies, factories, service centers, brokers, and traders and manufacturers across countries such as the United States, Mexico, and Canada.

The supply chain startup is focusing its efforts on accelerating the digitization of the steel supply chain industry by providing tools and software to support digital trade management, customer relationship expansion, logistics services, and other financing options in one platform.

By Nicholas Say Nicholas Say has been verified by Muck Rack's editorial team

Nicholas Ross Say is a news desk editor at Grit Daily. An award-winning journalist, he covers the daily startup beat. He grew up in Ann Arbor, Michigan and has lived in South America and South East Asia. At present, Nicholas lives in Southern Vietnam where the Sun shines, and the noodles flow like wine. He's written for Blockonomi and Coin Journal, among others.

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