CADDi, an AI startup for manufacturers, has raised $114 million in a Series D funding round, valuing the company at $1.2 billion. The Tokyo- and Chicago-based company aims to accelerate physical innovation 10-fold by 2035.
TL;DR
- CADDi raises $114M in Series D, doubling its valuation to $1.2B.
- The company's AI platform helps manufacturers organize and utilize engineering and production data.
- CADDi plans to expand its product lineup, build specialized AI models, and focus on global growth, particularly in North America.
What happened
CADDi, a startup that provides AI software to help manufacturers manage engineering and production data, has secured $114 million in a Series D funding round. This round values the company at $1.2 billion, more than double its previous valuation of $470 million reported in March 2025. The funding round included eight new and existing investors, such as Moore Strategic Ventures, Coreline Ventures, Toyota's Woven Capital, and HR Tech Fund.
The new funding brings CADDi's total funding to $234 million. The company, founded in 2017, initially launched CADDi Drawer, an AI-powered product designed to help manufacturing firms manage parts procurement and inventory. Over the past two years, CADDi has expanded its product suite to include an AI data platform for manufacturing, integrating various data types and structuring them for use by both people and AI agents.
CADDi's platform now includes CADDi Explorer (formerly CADDi Drawer) and CADDi Agent, an AI agent designed to assist with part standardization and quality impact assessments. The company has also launched six workflow products aimed at capturing tacit knowledge from experienced engineers and workers. These products help with tasks such as design reviews and identifying potential errors in CAD models.
Why it matters
CADDi's AI platform is designed to capture and codify the tacit knowledge of experienced employees, which is often not recorded. This is crucial for manufacturers looking to streamline operations and reduce costs. The company's products are marketed based on measurable returns, such as lower direct material costs and shorter engineering lead times, which are critical for automakers and other manufacturing firms competing with Chinese rivals.
The funding will be used to expand CADDi's product lineup, build AI models that understand manufacturing-specific data, and focus on global expansion, particularly in North America. The company also plans to hire more staff to support these initiatives. CADDi's goal is to accelerate physical innovation tenfold by 2035, which would significantly reduce the time it takes to develop and mass-produce new products, such as cars.
One of the biggest obstacles to adoption is change management. CADDi employs more than 100 customer success staff to help customers integrate its AI solutions effectively. The company is also hiring forward-deployed engineers to assist customers in using AI to its fullest potential. This approach aims to change organizations and create a significant business impact.
Key facts
- CADDi raised $114 million in a Series D funding round, valuing the company at $1.2 billion.
- The company's valuation has more than doubled since March 2025, when it was reported at $470 million.
- CADDi's total funding now stands at $234 million.
- The company was founded in 2017 and initially launched CADDi Drawer, now renamed CADDi Explorer.
- CADDi's AI platform includes CADDi Agent and six workflow products aimed at capturing tacit knowledge from experienced engineers.
- The company has customers in 22 countries, with a core focus on the U.S. and Japan, where more than half of the country's 100 largest manufacturers use CADDi.
- CADDi's headcount has grown to about 900 staffers, up from 600 in early 2025.
- The funding will be used to expand the product lineup, build specialized AI models, and focus on global expansion, particularly in North America.
Context
CADDi's AI platform addresses a significant challenge in the manufacturing industry: the efficient organization and utilization of engineering and production data. By capturing and codifying tacit knowledge, the platform helps manufacturers reduce costs, improve efficiency, and accelerate innovation. This is particularly important in an industry where competition is fierce, and the need for rapid product development is critical.
The company's focus on measurable returns and its commitment to helping customers integrate AI solutions effectively set it apart in the competitive AI landscape. As manufacturers increasingly look to AI to streamline operations and drive innovation, CADDi's platform offers a comprehensive solution that addresses a wide range of needs, from parts procurement to design reviews.
CADDi's ambitious goal of accelerating physical innovation tenfold by 2035 highlights the potential of AI to transform the manufacturing industry. By reducing the time it takes to develop and mass-produce new products, AI can help manufacturers stay competitive in a rapidly evolving market. CADDi's focus on global expansion and its commitment to building specialized AI models underscore its dedication to driving innovation and growth in the manufacturing sector.
