As Trump's tariff threats loom, Cavela just landed $6.6 million to help brands escape China manufacturing dependency. The AI startup's autonomous procurement agents are already saving customers 35% on production costs by sourcing from 40+ countries - timing that couldn't be better for nervous supply chain managers.
Cavela founder Anthony Sardain didn't plan on building a tariff-busting AI startup when he launched the company in 2023. But as brands increasingly panic about manufacturing in China, his timing looks prescient. On Wednesday, the AI-powered supplier sourcing platform announced a $6.6 million seed round co-led by XYZ Venture Capital and Susa Ventures, with participation from Crossover Capital. "You don't just walk into Vietnam and build up a supply chain," Sardain told TechCrunch. "A lot of brands find one supplier, and they hang on for the rest of their life, because they really don't want to lose it." That supplier dependency nightmare is exactly what Cavela's AI agents are designed to solve. The platform uses autonomous software tools that act like a personal procurement team, scouring suppliers across over 40 countries and negotiating specifications and pricing without human intervention. For small and midsize brands lacking dedicated global sourcing departments, it's a game-changer. The secret sauce lies in generative AI's ability to process the chaotic mix of data that defines manufacturing. "Making products involves a lot of text data, image data, diagrams, sketches, photos. This is kind of data that didn't play nice with technology up until AI," Sardain explained. Companies can now upload complete product specifications, blueprints, and requirements directly into Cavela's system. The AI agent then identifies dozens of potential manufacturers and instantly reaches out via WhatsApp, email, or text to understand production capacity, lead times, and collect pricing quotes. "They log in a couple of days later, and there are quotes in their inbox," Sardain said, describing the seamless process that eliminates hundreds of back-and-forth messages. The results speak for themselves. Cavela estimates customers save an average of 35% on production costs while dramatically reducing sourcing time. "If you get 100 quotes, you're going to, by chance, land on a much lower price, and you're also going to get a much better supplier in the process," Sardain noted. Early customers including fire-resistant apparel brand Western Welder Outfitting and men's grooming brand The Longhairs report finding manufacturers who produce goods at significantly lower costs - even below pre-tariff pricing levels. That's music to the ears of supply chain managers watching trade tensions escalate. Sardain brings unique credibility to the challenge, having grown up across Asian trade centers including Malaysia, Hong Kong, Thailand, Singapore, and mainland China. His family's three-generation involvement in trade gives him insider understanding of how local manufacturers operate. As a former data science lead at startup Tierra, he combines technical chops with deep sourcing expertise. The competitive landscape includes giants like , which connects brands to thousands of Chinese manufacturers, and , another AI-powered brand operations startup focused on sourcing. But Cavela's multi-country approach and autonomous negotiation capabilities set it apart in a market suddenly desperate for China alternatives. The funding arrives as brands face mounting pressure to diversify supply chains ahead of potential new tariffs. What started as a efficiency play has become a strategic imperative, with Cavela positioned to capitalize on the shift. The startup plans to use the fresh capital to expand its AI capabilities and geographic reach, potentially adding more countries to its sourcing network.
