Freehand raises $75 million to expand AI procurement agents

Freehand raises $75 million in a new funding round to expand autonomous artificial intelligence agents used by large companies to manage supply chain spending. The company said in a Wednesday statement that its software handles procurement, supplier management, invoicing and payments, areas where large enterprises are testing AI to reduce manual work and shorten operating cycles.

The round was co-led by Battery Ventures and NewRoad Capital Partners, according to Freehand. The company did not disclose valuation terms in the announcement.

What does Freehand AI do?

Freehand said its AI agents can negotiate pricing, apply contract terms, oversee suppliers, process payments and reconcile information inside enterprise systems. In procurement, an AI agent is software assigned to a workflow with authority to complete steps such as checking agreed terms, managing records and moving a transaction toward payment.

Freehand said its platform is already in use at companies including Meta, Unilever, Johnson & Johnson, Dunkin’, Pfizer and Cardinal Health. The company said those deployments have produced savings and workflow gains, including recovering 5% to 10% of spending in complex categories, completing workflows five to seven times faster and cutting procure-to-pay cycles by more than 70%.

A procure-to-pay cycle covers the path from purchasing activity through invoice handling and supplier payment. Freehand said its customers have also been able to shift staff to other work and reduce reliance on outsourced processes and older software systems.

Nitin Jayakrishnan, Freehand’s co-founder and chief executive, said in the company statement that the agents “decide, act and take accountability for outcomes.” Co-founder Abhijeet Manohar said the company’s approach shifted from making tools for users to building software that can operate as the user in defined business processes.

Who backed the Freehand funding round?

Battery Ventures General Partner Dharmesh Thakker said in Freehand’s statement that the company’s agents combine enterprise context with decision-making and execution, which he said can create “millions in savings for enterprises.”

Gregoire Lehmann, a partner at NewRoad Capital Partners, said Freehand’s customers are reporting measurable business results. He added that NewRoad sees the company as positioned to lead in AI-native supply chain spend management.

The financing comes as procurement has become an early proving ground for enterprise AI. A PYMNTS Intelligence report, “The Investment Impact of GenAI Operating Standards on Enterprise Adoption,” found that 73% of enterprises use or are considering generative AI to improve procurement efficiency.

The same report said larger companies, particularly those with revenue of $10 billion or more, are the most active in exploring the technology. PYMNTS also reported that procurement teams are already using AI agents to negotiate supplier contracts, process purchase orders and close deals for major corporations.

This story draws on original reporting from PYMNTS.