Gembah Raises $11M to Revolutionize Product Innovation

Gembah's Approach to Product Innovation

Gembah, a company based in Austin, Texas, operates with a straightforward mission. It aims to make product innovation more accessible by significantly reducing the obstacles involved in bringing new products to life. This objective aligns with numerous startup endeavors of the last decade, including crowdfunding platforms and additive manufacturing technologies.

A Platform for Streamlined Product Development

The core of Gembah’s offering is a platform and marketplace. This system is designed to guide users through each stage of the product creation process, with a projected turnaround time of “as little as 90 days.”

The platform facilitates connections between smaller businesses and a network of essential resources. These include factories, supply chain specialists, designers, and engineers, all working to expedite development.

Recent Funding and Growth

To further its vision, Gembah has secured $11 million in Series A funding. The investment round was spearheaded by ATX Venture Partners, with participation from Silverton, Flexport, Brett Hurt, Jim Curry, and Dan Graham.

This follows a previously announced $3.28 million seed round led by Silverton in April of the prior year, bringing the company’s total funding to $14.75 million.

The Impact of the Pandemic

Interestingly, the company reports that the pandemic has positively influenced its business model. Hardware startups have increasingly sought more online-based solutions and a shift towards sourcing closer to home, rather than relying on traditional sales channels.

Gembah experienced a 500% revenue increase in 2020 and anticipates tripling its revenue this year. This represents substantial growth despite the significant supply chain disruptions that have affected the industry over the past eighteen months.

Current Status and Future Plans

Currently, Gembah serves 300 active customers. While the company has not yet reached profitability, the new funding is intended to address this.

According to CEO and co-founder Henrik Johansson, the growth of e-commerce has benefited Gembah’s customers. He stated to TechCrunch, “Supply chains have been impacted to some degree, but as the global supply chain gets more complex and many companies want to diversify outside of China, they need help to navigate that change, and Gembah can help with that transition.”

The new capital will be allocated to expanding the company’s engineering team. Gembah currently employs 55 individuals in the U.S. and 19 in other locations, including Asia and Mexico.

Future hiring will focus on enhancing the marketplace, improving supply chain workflow, and developing machine-learning capabilities. The company also plans to expand its global network and increase its marketing and UI/UX teams.

Industry Perspective

Chris Shonk of ATX Venture Partners commented, “Gembah is a true innovator poised to help businesses capitalize on the growth of global eCommerce.” He further stated that the Gembah marketplace has the potential to unlock significant entrepreneurial opportunities by enabling a new generation of creators to enter the market.