Tvarit, a Frankfurt-based startup that’s on a journey to enable zero-waste manufacturing, has raised €5 million in the latest funding round led by Switzerland-based Momenta (also backed Smartex) and Futury Capital.
The round also saw a significant re-investment from existing investor Matterwave Ventures.
The funding will help the German startup to accelerate zero-waste manufacturing through AI-powered, waste-free, and energy-efficient metal manufacturing.
Additionally, the sustainable tech company will use the funds to accelerate its technology development and global presence.
What problem does Tvarit solve?
According to the World Economic Forum, industrial waste accounts for half of all waste generated globally, and manufacturing is the largest and fastest-growing contributor to this waste stream, with an estimated 20% of every dollar spent on manufacturing and producing waste.
The metal industry alone is estimated to lose €160 billion annually due to waste. Tvarit aims to tackle this issue by focusing on metal manufacturing processes such as casting, hot forming, and welding, among others.
Solved with hybrid AI
Founded in 2019 by Suhas Patel and Rahul Prajapat, Tvarit offers a hybrid AI solution combining deep metal processing domain knowledge with data-driven AI to provide continuous, accurate prescriptions and actionable insights that help machine operators achieve higher productivity.
The founding duo met in 2016 at an entrepreneurial networking event of TiE (one of the largest entrepreneurial networks out of Silicon Valley) event. Suhas was the president of TiE Germany at that time.
The company says its industrial AI can reduce manufacturing quality defects (scrap) by 50% and reduce energy costs by up to 30%.
These savings are particularly significant for the metal industry, where profit margins are only 5–8%.
As a result of Tvarit’s solution, profit margins can be significantly increased, and since metal manufacturing processes are energy-intensive, customers can also significantly reduce their carbon footprint.
The company currently employs 49 people as full time employees. Suhas Patel, Founder and CEO at Tvarit: “Metal manufacturing shop floors are very complex.” In state-of-the-art machines, there are 2.4 trillion possible combinations to optimise process parameters — no human can be sure of finding the optimum. “AI is the only way to eliminate waste on the shop floor.”
Ken Foster, Executive Director at lead investor Momenta: “Manufacturers in Europe are dealing with the dual challenges of the energy transition and carbon neutral goals.” Tvarit’s AI tools enable them to do both, driving precision manufacturing techniques to help maintain their global competitive advantage. Momenta is proud to lead the investment round in a company that is driving such “Industry 5.0” outcomes.
Benjamin Krahmer, Managing Partner at Futury Capital: “We have been fortunate enough to invest with our early-stage fund in Tvarit`s early days. With Tvarit´s recent significant growth, its superior AI, and its deep industry know-how, we are excited to further invest with our Growth Fund, enabling Tvarit to accelerate even stronger.”
Robert Gallenberger, Partner at Matterwave Ventures: “We are excited to welcome sector specialist Momenta and the growth fund of Futury Capital to the shareholder group. Our strong follow-on investment demonstrates our commitment to support Tvarit on its journey to build the future of metal manufacturing.”