New York-based Keychain has made significant strides in the consumer packaged goods (CPG) sector by closing a $15 million Series A funding round, led by BoxGroup and backed by notable investors including General Mills and Schreiber Foods. This round follows an earlier $18 million seed round announced last year, further solidifying Keychain’s position as a key player in the industry. The company’s platform aims to streamline the process for packaged goods companies and retailers to connect with manufacturing partners, addressing a critical gap in the market.
Keychain’s cofounder and CEO, Oisin Hanrahan, emphasizes the urgency of modernizing the CPG manufacturing landscape. “This has happened much faster than we expected,” he stated, referring to the platform’s rapid adoption among U.S.-based food and beverage brands, retailers, and manufacturers. The funding will allow Keychain to enhance its offerings, particularly by developing AI-powered workflow tools designed to accelerate product market entry for its partners. Hanrahan hinted at forthcoming announcements regarding new verticals and geographic expansions, indicating the company’s ambition to grow beyond its current scope.
Despite the food industry’s reputation for leveraging advanced technologies in areas like logistics and safety, the process of finding co-manufacturers has remained outdated. Hanrahan points out that traditional methods—relying on word of mouth, trade shows, or expensive consultants—are inefficient and often imprecise. Keychain disrupts this model by providing a comprehensive search and discovery platform that indexes over 20,000 U.S. manufacturers in less than eight months. This database is a game changer for brands and retailers looking to find the right manufacturing partners quickly and effectively.
The technology behind Keychain’s platform is rooted in a deep understanding of the manufacturing landscape. By analyzing over a million stock keeping units (SKUs) and leveraging AI, Keychain can match brands with manufacturers equipped to produce specific products. For instance, if a retailer seeks a co-packer for a particular type of trail mix, the platform can identify suitable manufacturers based on their processing and packaging capabilities. This targeted approach not only saves time but also enhances the precision of the matchmaking process.
General Mills’ Chief Supply Chain Officer, Paul Gallagher, praised Keychain’s potential to revolutionize supply chain workflows within the CPG industry. “We’re constantly looking for new ways to increase the efficiency of our supply chain workflows, and it’s rare that our team finds a product that they are universally positive about using,” Gallagher noted, underscoring the platform’s promise to reshape how the industry operates.
Keychain’s ambitions extend beyond mere matchmaking. The company envisions creating a holistic platform that facilitates every stage of the manufacturing process—from initial searches to final product approvals. This comprehensive approach aims to integrate various segments of the supply chain, potentially evolving into a marketplace for ingredients and packaging as well. Hanrahan’s vision is clear: to bring together the entire ecosystem of brands, manufacturers, and suppliers, creating a seamless workflow that enhances collaboration and efficiency.
As Keychain looks to expand its footprint, both geographically and across different product categories, it is poised to make a significant impact on the CPG landscape. The company plans to broaden its focus beyond food and beverage to include categories such as supplements, pet care, and personal care, with potential expansions into Canada and Mexico. This strategic growth could not only enhance domestic manufacturing capabilities but also reshape global CPG trade dynamics.
With its innovative platform and robust investor backing, Keychain is set to play a pivotal role in transforming the contract manufacturing industry, providing brands and retailers with the tools they need to thrive in an increasingly competitive market. The implications of this development are far-reaching, potentially leading to more efficient supply chains and stronger partnerships across the CPG sector.