Kodiact, a procurement technology startup developing an intelligent simulation platform for direct materials sourcing, has raised $2.5 million in pre-seed funding round led by Supply Change Capital.
The round also saw participation from Green Circle Foodtech Ventures and Velocity Catalyst.
The company will use the fresh capital to expand its product capabilities, grow enterprise customer deployments and build strategic partnerships. It also plans to enter additional industries with high raw-material costs, including cosmetics, packaging, and chemicals.
Kodiact helps food, beverage and consumer goods manufacturers manage the raw materials that account for a large share of product costs. Its platform replaces static annual sourcing plans with strategies that can adjust as market conditions change.
Since 2020, tariffs, climate-related crop failures and supply disruptions have made raw material prices more difficult to predict. For example, cocoa prices rose nearly fivefold between early 2023 and late 2024, reaching record levels and pushing chocolate makers to increase prices.
“When I was trading cocoa, the best buyers carried the whole market in their heads, and when they left, that knowledge left with them,” said Steve Tucker, Co-Founder and CEO of Kodiact. “Thirty years later, most manufacturers still manage their highest cost on spreadsheets. We built Kodiact so every buyer can see what’s coming, test their options, and act before volatility hits the bottom line.”
“Kodiact lets us model and rehearse our decisions before we make them. We’re pleased to be part of their early adopter program applying advanced AI capabilities to our category strategy,” said John Hutchinson, Director of Procurement at AG Barr.
“As the saying goes, vision without execution is hallucination. Kodiact finally brings a solution to direct materials that goes far beyond just category management. It matches the need for agility and velocity to actual capabilities,” said Bertrand Maltaverne, Director, Solution Intelligence, The Hackett Group.
Kodiact connects the materials manufacturers purchase with the market factors affecting their prices. The platform works with existing enterprise resource planning (ERP) systems, including SAP and Microsoft Dynamics, to help procurement teams identify cost and margin exposure, evaluate potential actions, and simulate decisions before they affect financial results.
The platform also records procurement decisions and their outcomes in a central ledger, allow companies to build on past buying experience. Launched in May 2026, Kodiact covers more than 500 raw materials across 23 categories.
The company was co-founded by CEO Steve Tucker and COO Dan Daehler, who have more than 25 years of experience working together in procurement technology and consulting. Their previous businesses included a procurement consultancy acquired by an SAP partner and an AI contract-management company acquired by DocuSign. CTO Jonathan Lee, a former founder and AI engineer, joined the company in 2026.
Kodiact is based in Chicago, San Francisco, and London. The latest funding will support further development of its market data, simulation, and AI agent capabilities, while helping the company expand its customer base and reach new industries.
