Onebeat, an Israeli provider of supply chain solutions for retailers, is launching operations in the US, said co-founder and CEO Yishai Ashlag.
The company will soon open a sales office on the East Coast or in the Midwest with its recent Series B funding. Onebeat, headquartered in Ramat Gan, has raised USD 15m since its inception in 2018. The company, spun off from Goldratt Consulting, closed a USD 5m round in December 2021 and just announced the addition of USD 10m in a Series B led by Magenta Venture Partners, AnD Ventures, Incapital Ventures, J Ventures, Surround Ventures and Wilson’s Bird Capital. The venture partners and private investors own less than 40% of the capital with the rest held by management and the founders, said Ashlag.
Onebeat is growing rapidly. The company, with 80 employees, has reached over USD 10m in revenue, 95% of it coming from abroad, Asia, Europe, and Americas. The startup is close to breaking even, said the CEO. Just two years ago, its annual revenue was USD 2m, he added.
“In one year, we will be profitable,” predicted Ashlag, who is hoping to reach USD 100m in three to four years. To get there, the CEO will invest in engineering and sales. He wants to grow his team of 30 engineers and expand sales in the US.
The company already works with 170 retailers across 26 countries. Panasonic in Japan is one of its new customers. Among its other brands are Calvin Klein in Brazil and American Eagle in Latin America.
American fashion and footwear retailers are its next targets. “We are looking for mid-size USD 50m prospects to USD 1bn companies,” said the CEO.
Ashlag said Onebeat can fulfill retailers’ supply chain needs at a cost equal to one-fourth or even one-fifth of what big players such as Accenture (NYSE: ACN) or IBM [NYSE: IBM] would charge.
“Most companies focus on forecast,” he explained. “Giant consultants offer expansive IT services that will plan how many in-season items should be in store at a certain time. We prefer to emphasize execution.” With artificial intelligence and machine learning, data are available instantly, he added, allowing retailers to react immediately. “They may decide day to day, item by item, on replenishment, new allocations, liquidation or promotions,” he said.
Ashlag wants to build the company as “fast” as possible. “Venture capital partners usually give us three to four years,” he said. “If they want to get out, when we have USD 100m in revenue we could keep growing with private equity.”
Competitors in the industry include MI9, 09, IBM and other consultants. Onebeat has worked with PwC and Ernst and Young as financial advisors. Its local law office is FSBC.
