Xometry Inc. has seen rapid growth since its launch in 2013, attracting $118 million in venture capital on its way to building out a network of thousands of manufacturers that participate in its on-demand manufacturing online marketplace.
Now, it also has a significant beachhead in Europe, where it plans to accelerate its expansion into 12 countries through its acquisition of the Shift on-demand online marketplace. Shift has brought Xometry a European network of more than 1,000 manufacturers who specialize in CNC machining and sheet metal manufacturing services, Xometry says. CNC, or computer numerical control, is a process by which machining or milling tools operate via computer programming.
Randy Altschuler, CEO, Xometry
Better service for BMW and Bosch
“Global expansion is a key step for us,” Xometry CEO Randy Altschuler said today when announcing the acquisition of Shift. “Many of our customers, like BMW and Bosch, have a global presence and we can serve more of their needs with a global network” of more than 4,000 manufacturers.
Xometry, based in Gaithersburg, Maryland, has also used its capital to develop an “instant quote engine” for pricing on-demand manufacturing jobs.
Xometry’s instant quote engine is a core part of its on-demand manufacturing service, which enables companies to request items to be manufactured on-demand, or as they need them. It lets customers upload 3D computer-aided design (CAD) files showing the specifications of items they need to be manufactured, then within minutes receive quotes, including price and delivery time, from available manufacturers in the Xometry network. When a customer clicks to choose a quote, the manufacturer receives the request and decides whether to accept the order.
AI and algorithms monitor supply and demand
Xometry has also developed artificial intelligence technology and algorithms designed to constantly learn about supply and demand through its online marketplace to better match customers with on-demand manufacturers. Xometry has also been expanding the types of manufacturing services it offers, such as 3D-printing technology that can produce custom parts in a single day.
These developments will complement Xometry’s drive into Europe, Altschuler says. “Our AI-driven algorithms and intelligent sourcing platform give us a competitive advantage as we expand across new geographies and manufacturing technologies,” he says.
Shift co-founders, L-R: Dmitry Kafidov, Alexander Belskiy, Albert Belousov.
Shift’s co-founders say Xometry is a good fit for Shift, which will now operate as Xometry Europe. “We’re eager to leverage Xometry’s technology to continue to scale our business in Europe,” says Shift co-founder Dmitry Kafidov, who has also been named managing director of Xometry Europe.
Alexander Belskiv, another Shift co-founder, adds, “There are huge opportunities in enabling Xometry’s Instant Quote Engine and other product features in the European market.”
Shift’s lead investors include Cherry Ventures, which will become an investor in Xometry. “The custom manufacturing market is a massive global market of over $100 billion,” says Christian Meermann, founding partner of Cherry Ventures. “We’re excited for Shift to utilize Xometry’s industry-leading technology as it leverages the global manufacturing expertise from other Xometry investors, including IBM i Ventures and Robert Bosch Venture Capital.”
Xometry employs 300 people, up from 100 two years ago, the company says. It notes that it has doubled revenue each year since its 2013 launch, but doesn’t release revenue figures.
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