Austin software maker SourceDay raises $6.5 million for growth

Austin software company SourceDay, which helps manufacturing companies automate the order fulfillment process, said Wednesday that it has raised $6.5 million from investment firms Silverton Partners, Draper Associates and ATX Seed Ventures.

The company said the new funding, its largest to date, will allow it to add staff members and expand its sales and marketing operations while investing more into product development.

The company has now raised a total of about $10.8 million.

“SourceDay is just scratching the surface,” CEO Tom Kieley said in a written statement. ““By replacing outdated manual processes with automated efficiency, manufacturers, distributors and their suppliers are bridging the gaps in productivity, resource management, collaboration and margins.”

SourceDay was founded in 2013 and received its first round of outside funding in 2015, when ATX Seed Ventures, Austin-based Silverton Partners and California-based Draper Associates invested $750,000. The group also invested $3.5 million in July 2017.

SourceDay runs a cloud-based system that centralizes purchasing orders for buyers and suppliers. The company, which now works with more than 80 customers across six countries throughout North America, Asia, Europe and South America, says its software improves delivery time by an average of 35 percent. Last year, it also released a mobile app.

SourceDay now has 28 staff members at its North Austin office. The company said it plans to double that number by the end of next year.