This Chicago startup just raised $3M to make it easier to shop for industrial equipment

Written by Sam Dewey
Published on Jul. 13, 2016
This Chicago startup just raised $3M to make it easier to shop for industrial equipment

Machinio, a search engine and marketplace for industrial and agricultural machinery, just announced the close of a $3 million Series A.

Machinio’s platform opens access to more than one million items up for sale from across the globe. From metal- and woodworking equipment to machines for farming, packaging, construction and even lawn mowers, Machinio’s database draws in over three million pageviews per month from viewers in more than 190 countries.

Posters can opt to advertise equipment they’re selling with a premium package that optimizes ad placement. According to the company, the number of premium clients they have has quadrupled in just over a year.

Machinio CEO Dmitriy Rokhfeld said the bulk of the new cash will be used to grow the company’s sales and development teams in order to continue growing their pool of inventory and sellers. Today, the company’s headcount sits at about 25.

Headquartered in Chicago, the company spent time in both New York and San Francisco before choosing to set up shop in the Midwest. The move signaled the company efforts not only to cement itself in the industrial heart of the country, but also to hire great talent, Rokhfeld said in an interview with us last year

The round, led by Ritchie Bros., follows a $1 million seed round raised in 2014.

Ritchie Bros. is one of the largest industrial auctioneers around, selling used equipment across a variety of industries that range from construction and agriculture to energy, mining and forestry.

The synergy between the two companies, according to Rokhfeld, is poised to create a strong and beneficial partnership.

“The investment led by Ritchie Bros. provides strong validation of our technology and business approach,” said Rokhfeld. “By combining their listings with those of thousands of other companies from around the world, we are that much closer to fulfilling our mission of providing buyers with access to every available machine. As a young company, being associated with a well known brand like Ritchie Bros. will strengthen our brand and name recognition in the industry.”

For Ritchie Bros., the investment is a venture aimed at bringing digital innovation to the equipment industry.

"Our investment in Machinio demonstrates our desire to find even more ways to support the equipment industry and serve the various needs of equipment owners,” CEO Ravi Saligram, CEO Ritchie Bros. in a statement. “Machinio's scalable model uses innovative technologies to provide buyers with the widest assortment of equipment listings on the web, while also driving lead generation for equipment sellers.”

According to a statement, the investment “is not considered to be material to Ritchie Bros.' financial results,” and Machnio will continue to “operate as an independent business that caters to the needs of all equipment buyers and sellers” — despite Ritchie Bros. position as a leading equipment seller.

All other terms of the deal were not disclosed.

Image via Machinio. 

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Artificial Intelligence • Cloud • Internet of Things • Machine Learning • Analytics • Industrial