SkySelect, an Estonia-based AI-powered eProcurement-as-a-Service platform for aircraft parts, has raised $9M in funding co-led by Verb Ventures and RockCreek. The platform automates sourcing, purchasing, ordering, and tracking for airlines, MROs, and leasing companies. The capital will enhance AI adoption in aircraft parts procurement.
AI Targets Supply Chain Bottlenecks
The raise arrives amid persistent aviation supply disruptions, as noted in recent Reuters coverage of record demand straining parts availability. PartsBase, a key competitor, has raised $45.5M total. SkySelect's end-to-end AI automation addresses gaps in manual RFQ marketplaces like Locatory.com, which self-invested $10M in expansions.
$50B Excess Inventory Drains Airlines
Aviation faces $50B in excess inventory and $30B in aircraft-on-ground (AOG) costs annually, per industry reports. The $60B aircraft materials aftermarket suffers from fragmented suppliers and delays, with airlines holding bloated stockpiles amid shortages. Legacy systems fail to deliver real-time visibility, exacerbating post-pandemic bottlenecks.
Autonomous AI Handles 90% of Purchases
SkySelect's platform enables up to 90% autonomous purchasing, 20% cost savings, 15% better on-time delivery, and 100x faster cycle times. Unlike PartsBase's search-focused listings or Aeroxchange's e-commerce network, SkySelect integrates AI for predictive quoting, order optimization, and supplier matching across 3000+ active suppliers.
As Erkki Brakmann, CEO noted:
"Legacy procurement systems are fundamentally broken."
The full-service procurement option requires no IT setup, supporting 2100+ aircraft tails yearly for clients like Finnair, JetBlue, and LATAM.
Marketplace VCs Validate Aviation Play
Verb Ventures, a B2B marketplace specialist with bets like APFusion in auto parts, co-led alongside RockCreek, a $16B+ AUM firm focused on AI innovation. SmartCap Green Fund, an Estonian government-backed vehicle, also participated, signaling EU greentech alignment via supply chain efficiencies. This mix underscores conviction in SkySelect's pivot from general procurement to aviation specialization.
$60B Aftermarket Ripe for Digitization
The aircraft materials aftermarket stands at $60B, projected to exceed $70B by 2030. Competitors like ILSmart emphasize pricing intelligence, but lack SkySelect's procurement automation. Aging fleets and rising MRO demand, per Oliver Wyman forecasts, drive digital shifts amid 17,000 aircraft backlogs.
Supply chain chaos has become aviation's new norm, with Reuters highlighting delivery delays for over 5,300 aircraft.
Repeat Founders Pivot from DeltaBid
Co-founders Erkki Brakmann (CEO), Tia Dayal Considine (COO), and Rain Öpik (CTO) evolved their prior company, DeltaBid—a procurement AI platform serving aviation clients—into SkySelect around 2019. Brakmann led sales at Mercell ($80M+ revenue firm), while Considine holds an MIT Supply Chain Masters. Recent hires include ex-LATAM Airlines ops lead Jeroen Van Duren and ex-Satair (Airbus) marketplace head Viktoriya Fedulova.
US and India Hiring Accelerates Growth
SkySelect plans hiring in the US, India, and Estonia to support scaling, following tripled customer base in 2024 and $5B+ in parts processed. Product launches like enhanced analytics and client wins with Sun Country Airlines position it for national expansion among 30+ airlines and MROs.