Orderful closed a $35 million Series C funding round led by Koch Disruptive Technologies and NewRoad Capital, announced Tuesday, betting that artificial intelligence can finally eliminate the managed service fees that have sustained the Electronic Data Interchange industry for 40 years. The investment targets a business model built on complexity: companies like SPS Commerce, the largest publicly traded pure-play EDI provider, generated $751 million in revenue in 2025, with 96% of it recurring, by charging customers annually to configure, maintain, and operate integrations that the software was never built to handle automatically. Orderful's founder and CEO Erik Kiser argues that "EDI has been broken for 40 years" not because the problem was unsolvable, but because no one rebuilt it from scratch.
The company's AI-native EDI solution, Mosaic, launched in December 2025 and has already compressed what historically took three months or more into less than a week. KBX Logistics, Koch's transportation and logistics arm, cut its onboarding process from 95 steps to 32 while processing millions of EDI transactions monthly. NFI reduced onboarding time by 90%, dropping new partner setup from an average of 10 weeks to under five days. Heartland Logistics Group went from six months to five days for customer onboarding. Hirschbach Motor Lines eliminated four EDI outages in 45 days and nearly 500 lost loads under their legacy provider, achieving zero outages after switching to Orderful while cutting their EDI team from six people to one. Every Man Jack, a men's personal care brand, saw on-time delivery rates drop from 97% to 80% under their previous provider, then recover to above 95% after migrating over 50 trading partners to Orderful in six months, with transaction processing falling from up to 24 hours to seconds.
According to Grace Sharkey, Orderful's PR and Communications manager, legacy EDI providers depend on "revenue that stays unsolved, where the service fee exists because the product was never built to make the service unnecessary." Gregoire Lehmann, partner at NewRoad Capital, called the Mosaic launch "a meaningful inflection point" that reinforced the firm's initial vision when partnering with Orderful. Jon Chisholm, managing director at Koch Disruptive Technologies, said his firm "invests in principled entrepreneurs building technologies that improve critical systems and workflows," noting an opportunity to leverage Koch's broader network to support Orderful's scaling and commercial partnerships. Koch Disruptive Technologies had already witnessed Orderful's capabilities through KBX Logistics before committing capital to this round.
What justifies the managed service fee that Orderful aims to eliminate is the manual work underneath EDI: someone has to read each trading partner's specification document, write the mapping code, and update it every time requirements change. Mosaic's transformation layer uses AI-authored code to map between the company's API and each trading partner's specific EDI format, then reads updated specifications and regenerates transformations automatically when requirements shift. A continuous learning system converts every correction, error pattern, and trading partner update into a permanent network-wide improvement. Sharkey explained that this approach represents bringing AI into EDI not as "a faster help desk" or "smarter monitoring dashboard," but as a platform that makes the service layer unnecessary.
The new capital will fund continued technology development, including data visibility and intelligence solutions, alongside expanded commercial partnerships. For Every Man Jack, two open order management roles went unfilled after team members departed because the operation kept running without them. The company's message is straightforward: when operational teams stop managing EDI around its limitations and start running it as infrastructure, the results compound fast.