NEW TECH FOODS

Keychain, a start-up in the consumer packaged goods (CPG) sector, has secured $30 million in Series B funding, in a round led by Wellington Management, with participation from existing investor BoxGroup.

This funding brings Keychain's total capital raised to $68 million, aimed at enhancing its AI-powered platform that connects brands, retailers and manufacturers.

The funding will primarily support the development of KeychainOS, a software suite designed to optimise supply chain operations and improve product development processes. With its engineering hub based in Gurugram, India, Keychain is focusing on expanding its presence in North America.

Keychain's Series B funding follows a Series A round completed in November 2024, where the company raised $15 million at a post-money valuation of $260 million.

Prior to that, in November 2023, Keychain secured $18 million in its seed round, led by Lightspeed Venture Partners. The total funding raised to date now stands at $68 million, indicating a robust interest from investors in Keychain’s potential to innovate within the CPG industry.

The new capital will be directed toward several strategic priorities:

Enhancement of KeychainOS: Further developing the platform to include modules for food safety compliance, purchasing, inventory management and production planning.

Team expansion: Increasing the engineering and product teams in Gurugram to accelerate development efforts.

Market growth: Strengthening Keychain's foothold in North America and exploring potential partnerships in Europe.

AI integration: Using AI technologies to streamline data integration and improve supply chain efficiency.

Since its establishment in 2023, Keychain has made significant strides, collaborating with eight of the top ten US retailers and several major CPG brands, including General Mills. In addition, customers like Rich Products and Aura Bora have praised the platform for streamlining supply chains.

To date, the platform has facilitated over $1 billion in project submissions, reflecting its growing influence in the market.

Keychain's AI-driven marketplace seeks to digitise a traditionally offline process, significantly reducing the time it takes for brands to connect with manufacturers. This approach has the potential to disrupt existing market dynamics, particularly for traditional intermediaries.

As the CPG industry increasingly embraces digital transformation, Keychain is well-positioned to capitalise on trends favouring AI-driven solutions and the demand for private-label products. The company also plans to expand into European markets in the near future.

Some of the product supply chains that Keychain currently works with include nuts, seeds, dried fruit, deli meats, gelato, spring and distilled water, protein bars and chocolate, to name just a few.

CEO Oisin Hanrahan said: “It’s the talent, depth, availability and the speed with which you can access talent [in India] that makes it a compelling destination for product development. If we can take [the manufacturing partner search] from months down to days, we think we can unlock innovation in product development for this whole industry.”

Kevin Spratt, regional president at Rich Products, added: “This partnership is a strategic move that will empower us to drive greater growth, foster enhanced innovation and deliver even more unique value for our customers”.

With strong financial backing and a commitment to enhancing its platform, Keychain aims to play a significant role in the evolving landscape of CPG manufacturing.