Ricerca Secures 1.7 Billion JPY in Series A Funding Round

Ricerca, a Tokyo-based company specializing in optimizing order and procurement operations through its unique Agentic ERP solution called "RECERQA," has successfully raised 1.7 billion JPY in its Series A funding round. This latest funding round has brought the total amount raised by the company to over 2 billion JPY since its inception in April 2022.

The funding round was spearheaded by Angel Bridge, with participation from existing investors including Genesia Ventures and New Commerce Ventures, as well as several individual investors. The funding was also supplemented by debt financing from major banks such as Mizuho Bank, Shoko Chukin Bank, Sumitomo Mitsui Banking Corporation, Resona Bank, Joyo Bank, and Hokkok Bank. In addition to the capital influx, Ricerca has strengthened its governance structure, appointing co-founder Momoka Koda as COO and Taku Hiramatsu as CTO. The company has also welcomed new external directors Masanori Hayashi and Kankaku Nakakura, along with auditor Masashi Takahashi, transitioning to a board of directors format to promote both growth and discipline.

With the capital raised, Ricerca is committed to enhancing the product development of its Agentic ERP solution "RECERQA," focusing on optimizing the order and procurement domain. This includes expanding its organization and bringing in AI engineers and Forward Deployed Engineers (FDEs) to accelerate the deployment of its solution among major manufacturing firms and trading companies.

Addressing Structural Inefficiencies in B2B Transactions

B2B transactions play a pivotal role in supporting operations across industries; however, they are often plagued by structural inefficiencies. While the introduction of ERP systems since the 1990s and the advent of digital transformation in the 2010s with tools like RPA and AI-OCR have partially digitized processes, the fundamental structure of relying on human intervention to read data, make judgments, and input instructions into systems remains unchanged. Ricerca believes this reliance is the main bottleneck hindering complete end-to-end digitalization of operations.

The Future of ERP with Ricerca

The Agentic ERP "RECERQA" was developed to tackle inefficiencies within the order and procurement sector. Leveraging a proprietary four-layer architecture known as "Quattro," RECERQA autonomously normalizes data, utilizes stored data for operational decision-making, and supports execution seamlessly throughout the business cycle.

Traditional ERPs are designed on the premise that humans manipulate the system. In contrast, Agentic ERP flips this premise; AI agents comprehend data and make decisions based on operational rules, allowing humans to focus on final decision-making. This shift marks a transition from a "System of Record" to a "System of Action."

Moreover, as operational records are accumulated post-implementation, the accuracy of AI judgments improves, systematically reducing human verification costs. The more businesses engage with the system, the more it evolves, offering benefits that traditional ERPs do not provide in the AI-driven era.

The Unique Four-Layer Architecture of Quattro

Ricerca's "Quattro" architecture allows users to initiate optimized operations without spending extensive time on AI development. The layers are:

- Layer 1: QUON – This data foundation layer normalizes data from varying formats and languages into a unified model, allowing for robust comparison and analysis.
- Layer 2: QRAFT – Here, unique industry workflows and guidelines are structured for reproducibility, converting tacit knowledge into actionable logic.
- Layer 3: Agent – Utilizing data from QUON and procedures from QRAFT, AI agents autonomously analyze and make recommendations based on data-driven evidence.
- Layer 4: Execution – In this layer, human operators validate AI recommendations, ensuring seamless execution of operations.

The system is designed to be self-persistent and continuously improving, adhering to company-specific operational protocols. As industries like manufacturing, trading, and insurance start to adopt this innovative approach, Ricerca aims to reestablish how businesses function at their core.

Goals for Series A

Since its founding, Ricerca has consistently focused on building the foundational elements for the Agentic ERP. Following the completion of the QUON data layer, the company will integrate the QRAFT logic into its product to facilitate deeper engagement with industry-specific enterprises. This Series A funding marks a transition point, moving from initial validation to substantial deployment in significant corporate settings, ensuring that the transformative power of AI is harnessed effectively.

- Product Development: Strengthening Agentic ERP functionalities and expanding industry templates.
- Organizational Growth: Hiring data scientists, FDEs, product engineers, and consultants.
- Accelerated Deployment: Focusing on manufacturing and trading sectors, establishing a performance-based business model.

With robust investor confidence and a clear vision, Ricerca stands on the brink of a transformative leap forward, aiming to redefine the standard of operations in procurement and supply chain management through AI technology.

Conclusion

From a humble start, Ricerca has established itself as a pioneering force in reshaping how businesses interact with their operational frameworks. As the company embarks on this next chapter, collaboration with partners, clients, and investors will be key to driving the broader adoption of its transformative solutions in the ever-evolving landscape of enterprise resource planning.