Elm AI, a startup from Cornell University that uses artificial intelligence to improve supply chain sustainability and operational effectiveness, has raised $2 million in an oversubscribed seed funding round.
With this new capital, Elm AI plans to accelerate the onboarding of customers currently on its waitlist and further invest in advancing its technology. The company aims to become the leading platform for managing supplier performance and risk at scale.
The timing of the investment is crucial, as global businesses face increasingly complex regulatory requirements and rising compliance costs. Elm AI’s platform leverages machine learning to automate the analysis of supplier documentation—including questionnaires and audit reports—delivering quick, actionable insights that minimize the need for expensive manual assessments.
Founded in 2023 by Advait Raykar, Aparajita Thakker, Ken He, and Eesha Khanna, Elm AI was incubated at Cornell University and initially supported by both the university and the Entrepreneurs Roundtable Accelerator. Elm AI’s software is already in use by a variety of clients, ranging from mid-sized apparel brands to multinational corporations generating billions in revenue annually.
The platform currently manages data from thousands of factories across the globe. One of its early adopters is Reformation, a leading sustainable fashion brand. The funding round was led by Beta Boom Fund and Working Capital Fund, with additional contributions from Boro Capital Partners, Very Serious Ventures, Gorges Ventures, The Bond Collective, and Textbook Ventures.
“Elm AI has greatly improved our responsible sourcing processes,” said Carrie Freiman Parry, Senior Director of Sustainability at Reformation. “By streamlining administrative tasks, it enables us to focus on developing programs and systems that foster safe, healthy, and equitable working conditions.”
Industry leaders have also expressed strong support for Elm AI’s mission. James McMichael, founder of ELEVATE Global and Mosaic RSR, remarked, “The Elm AI team’s focus on addressing real-world challenges is remarkable. Their approach demonstrates how AI can drive significant progress in labor rights and sustainability throughout global supply chains.”
Elm AI offers an AI-powered platform for managing supplier sustainability, performance, and risk data. By automating complex workflows, the platform helps businesses boost efficiency and transparency across their global supply chains.
