Xometry has announced a massive new equity funding round, bringing in another $75 million.
The on-demand manufacturing marketplace, which just recently added another 3D printing technology to its growing suite of offerings, has now raised a total of $193 million in funding since its founding seven years ago.
The new equity round was led by funds and accounts advised by T. Rowe Price Associates, and also included Durable Capital Partners and ArrowMark Partners, as well as previous investors BMW i Ventures, Greenspring Associates, Dell Technologies Capital, Robert Bosch Venture Capital, Foundry Group, Highland Capital Partners, and Almaz Capital.
“The adoption of distributed manufacturing across industries is accelerating,” said Andrew Davis, Director of Private Investments at T. Rowe Price Associates, Inc. “Xometry’s agile digital marketplace helps both the Fortune 500 and smaller businesses meet their production requirements. Xometry has the right team, the right technology at the right time to build a strong, global scale manufacturing business.”
That right-time-right-place offering seems to be serving Xometry quite well, indeed. Digital manufacturing has not been impacted to the extent that many traditional manufacturing operations have been. Digital manufacturing technologies like additive manufacturing reduce the reliance on traditional supply chains that have been severely disrupted during the ongoing pandemic conditions.
We’ve been seeing this pandemic-as-opportunity sensibility permeating throughout the 3D printing industry these last few months, as the silver lining to all the difficulties of 2020 is that this technology is truly proving its worth as a viable manufacturing solution. And investors are noticing.
3D printing isn’t by any stretch the only technology suite Xometry offers in its on-demand manufacturing services, of course. That strategy continues to serve the company well, as flexibility is important to their operations. As always, it’s about finding the right tool for each job, and offering complementary additive and subtractive technologies is simply smart business for a manufacturing service.
Xometry now offers more than 60 metal and plastic materials for 3D printing alongside technologies like CNC machining, injection molding, and sheet metal. The service works through a vast, 5,000-manufacturer-strong, network to deliver these capabilities.
The company has remained on a strong growth trajectory, as they note that revenue has doubled each year over the past five years.
“Xometry is focused on helping manufacturers navigate the current disruption associated with supply chain flexibility, reshoring and shift to digital manufacturing,” said Randy Altschuler, CEO of Xometry. “We’re thrilled to be working with T. Rowe Price, Durable Capital Partners and ArrowMark Partners as we build on our strong growth. This funding will enable us to continue to accelerate our business through investments in our software platform, new products, and other initiatives.”
Along with this ongoing growth comes a new member of the Xometry C-suite, as Jim Rallo is coming onboard as the new CFO. This new onboarding is leading to the possibility of other new major steps, as venues like TechCrunch raise the question of a possible IPO in Xometry’s future. Indeed, the wording of Rallo’s appointment suggests that his IPO experience is important to Xometry’s future, as it notes:
“Rallo previously served as CFO and President of Liquidity Services, leading the company’s initial public offering in 2006.”
Well, it certainly wouldn’t be the only major digital manufacturing enterprise to be going public this year.