Cavela lands $6.6M to help brands beat pre-tariff manufacturing costs

When Anthony Sardain began developing Cavela in 2023, an AI startup that helps brands automate supplier sourcing, he did not foresee that new tariffs would drive customers to become increasingly wary of manufacturing products in China. He noted that you do not simply walk into Vietnam and build up a supply chain. Many brands find one supplier and hold onto them indefinitely because they do not want to lose that connection.

This challenge is especially true for small and midsize companies that lack dedicated global sourcing departments. Sardain claims that Cavela solves this problem through its AI agents. These software tools perform tasks autonomously and act as a personal procurement team. The agents can find potential suppliers in over forty countries and negotiate product specifications and pricing.

Recently, Cavela announced that it raised six point six million dollars in seed funding. The round was co-led by XYZ Venture Capital and Susa Ventures, with participation from Crossover Capital.

Finding suppliers and negotiating pricing is an inherently arcane and time-consuming process. According to Sardain, it was impossible to automate without generative AI. He explained that making products involves a lot of text data, image data, diagrams, sketches, and photos. This is the kind of data that did not work well with technology until the advent of AI.

The latest large language models and image models allow brands to upload their complete product information directly into Cavela’s AI agent. This includes specifications, blueprints, and all other details about the item they want produced. Based on those particulars, the agent identifies dozens of potential manufacturers. It then instantly contacts those factories via WhatsApp, email, or text to understand production capacity and lead times and to collect pricing quotes.

Sardain claims the entire process is seamless, sparing brands from sending hundreds of messages back and forth. He said that customers log in a couple of days later and find quotes in their inbox. Companies then typically ask a shortlist of potential suppliers to send product samples, which aids in selecting one or more factories for final production.

Cavela estimates that its customers not only substantially reduce the time spent searching for manufacturing partners, but they also save an average of thirty-five percent on production costs. Sardain stated that if you get one hundred quotes, you will by chance land on a much lower price, and you will also get a much better supplier in the process.

Cavela’s customers include fire-resistant apparel brand Western Welder Outfitting and men’s grooming brand The Longhairs. These companies report that the startup helped them find manufacturers who produce goods at a significantly lower cost, even below pre-tariff pricing.

Sardain is a former data science lead for the data analysis startup Tierra. He traces his knowledge of trade and sourcing back three generations within his family. He grew up living across Asian trade centers, including Malaysia, Hong Kong, Thailand, Singapore, and mainland China. This experience gave him a valuable understanding of how local manufacturers approach their work.

Cavela’s competitors include Alibaba, which connects brands to thousands of manufacturers in China, and Pietra, a brand operations startup that similarly helps businesses source goods with the help of AI.