Digit, an Atlanta-based next-gen cloud ERP platform for manufacturers and distributors, has raised $3M in a growth round led by Tech Square Ventures, bringing total funding to $6.3M. The platform unifies inventory management, production planning, warehouse operations, purchasing, and sales with real-time visibility and quick 2-6 week implementations. The capital will fuel engineering, product development, and go-to-market expansion.
ERP Market Hits $106B Milestone
The raise aligns with a $106B global ERP market growing at 9.4% CAGR. Katana MRP secured $18M while MRPeasy raised under $1M in seed funding. Digit targets growing SMBs (11-50 employees) in food & beverage, plastics, and electronics with a full ERP replacing spreadsheets and legacy systems like NetSuite.
Legacy ERPs Fail Factory Floors
Manufacturers and distributors rely on spreadsheets for inventory and production, leading to manual errors and data reconciliation. Legacy systems like NetSuite introduce high complexity and costs unsuitable for SMBs. Demand accelerates as firms migrate for real-time operations amid supply chain volatility.
AI-Native Unifies Manufacturing Ops
Digit delivers MRP software, BOM management, production scheduling, shop floor control, CRM, and traceability in one intuitive system. It integrates natively with QuickBooks, Shopify, Amazon, and WooCommerce via GraphQL API. Unlike Katana MRP's MRP focus or Acumatica's enterprise scale ($150M+ funding), Digit offers NetSuite-level features at SMB speed.
Mobile Scanning Powers Shop Floor
Features like AI-powered trials, mobile barcode scanning, and lot-level traceability cut fulfillment times, as seen with On Foot Innovations reducing from 16 weeks to 4 days. Custom table views and bulk edits reduce manual work.
As Dan Koukol, CEO, noted:
"Teams are moving away from brittle legacy ERPs…"
Blake Patton of Tech Square Ventures added texture:
"Traditional systems weren’t built for the factory floor…"
Atlanta Investors Back SMB Shift
Tech Square Ventures led the oversubscribed round with Barrel Ventures, Service Provider Capital, and prior backers like HPA and Assembly Ventures. This Atlanta-focused fund signals regional conviction in manufacturing tech. Total funding hits $6.3M after a $2.5M seed in February 2025.
Competitors Chase ERP Dominance
The space includes Fishbowl (acquired, QuickBooks add-on) and MRPeasy for simpler ops. Digit differentiates with comprehensive warehouse management and customer portals absent in lighter rivals. Trends like AI automation and cloud architectures drive capital into SMB-friendly alternatives.
Founder Expertise Drives Product
CEO Dan Koukol brings 12+ years, including CEO of Prodigy Disc and consulting 110+ manufacturers on ERP pain points. CRO Simon Kronenberg scaled growth at Talentspace (acquired by Handshake). CTO Alena Dagneau led engineering at edtech firms, ensuring intuitive UIs for non-tech users.
Hiring Fuels AI Roadmap
Post-raise plans target engineering hires and product acceleration, including AI-native features like scorecards and transfer orders. Recent QuickBooks Online approval validates security for broader adoption. Strongest quarter in history precedes national scaling via integrations and G2 5-star ratings.