​​​​​​​Elm AI Raises $2 Million to Advance AI-Powered Supply Chain Sustainability Platform

Elm AI, a Cornell University spinout leveraging artificial intelligence to enhance supply chain sustainability and operational efficiency, has raised $2 million in an oversubscribed seed funding round.

With the fresh capital, Elm AI plans to expedite onboarding for customers currently on its waitlist and invest further in enhancing its technology. The company aims to establish itself as the go-to platform for managing supplier performance and risk at scale.

The funding comes at a pivotal time for global enterprises grappling with increasingly complex regulatory demands and rising compliance costs. Elm AI’s platform uses advanced machine learning to automate the analysis of supplier documentation—including questionnaires and audit reports—providing rapid, actionable insights that reduce the need for costly manual assessments.

Founded in 2023 by Advait Raykar, Aparajita Thakker, Ken He, and Eesha Khanna, Elm AI emerged from Cornell University’s ecosystem and received early backing from the university itself and the Entrepreneurs Roundtable Accelerator. 

Elm AI’s software is already in use by a range of clients, from mid-sized apparel companies to multinational corporations with billions in annual revenue. The platform currently manages data from thousands of factories worldwide. Among its early adopters is Reformation, a prominent sustainable fashion brand.

The investment was led by Beta Boom Fund and Working Capital Fund, with participation from Boro Capital Partners, Very Serious Ventures, Gorges Ventures, The Bond Collective, and Textbook Ventures.

“Elm AI has been instrumental in transforming our responsible sourcing process,” said Carrie Freiman Parry, Senior Director of Sustainability at Reformation. “By streamlining administrative tasks, it allows us to focus on building programs and systems that support safe, healthy, and equitable working conditions.”

The company’s mission has also drawn praise from industry veterans. James McMichael, founder of ELEVATE Global and Mosaic RSR, said, “The Elm AI team’s maturity and commitment to solving real-world problems is impressive. Their approach shows AI’s potential to accelerate progress in labor rights and sustainability across global supply chains.”

Elm AI offers an AI-powered system of record for supplier sustainability, performance, and risk data. By automating complex workflows, the platform helps enterprises drive efficiency and transparency across their global supply chains.