Today marks a major milestone for Fragment. We're officially launching the company and announcing $56 million in funding from investors including 8VC, General Catalyst, and A* with angels including Roelof Botha, Nikesh Arora, Jeff Wilke, Eric Wu, Dennis Cinelli, and more.
We're building toward a future where enterprise software does more than record and manage business operations. We believe it should be able to carry out the complex work required to keep enterprises running.
It's a vision we're already bringing to life with some of the world's largest enterprises, including companies like Graybar and CNX. And today, we're excited to share why we started Fragment, what we've built, and where we're headed.
The problem we've known for years
Manufacturing has always been personal to me. My parents met in a factory, and growing up, I heard firsthand how countless daily decisions determined whether a business could keep running.
What many people forget is that enterprise software itself started in the physical economy. In 1887, railroad executive Marshall Kirkman wrote a manual describing how large companies should manage purchasing, inventory, and the people responsible for keeping operations moving. Nearly 140 years later, many of those same responsibilities still exist inside the world's largest enterprises.
Over the decades, companies have invested billions in software like SAP, Ariba, and Coupa to digitize and manage these operations. But while the technology has changed dramatically, much of the underlying work hasn't. When something goes wrong, people still have to step in, investigate what happened, and figure out how to fix it.
And that work has only become more complex. Today's manufacturers are navigating shifting tariffs, supplier disruptions, changing costs, and increasingly unpredictable global supply chains. Every change can set off a chain reaction across purchasing, deliveries, and payments.
Behind sophisticated enterprise systems are still people doing the painstaking work of keeping everything moving, from reconciling conflicting records to tracking down missing information and coordinating across teams to resolve problems. This problem of workflow fragmentation is one that my cofounder Naveen has long been obsessed with. And, we saw that at the world's largest manufacturers, these issues arise countless times a day.
Naveen and I began to ask ourselves: What if software could understand how a company operates well enough to take on that manual work itself? That question became the foundation for Fragment.
Starting where complexity is greatest
We made a deliberate decision to start with direct procurement at some of the world's largest manufacturers, where complex global supply chains and fragmented systems have made automation particularly difficult.
Direct procurement is how manufacturers source the materials and components that go into the products we all depend on.
When an order changes, a delivery arrives in parts, or an invoice doesn't match an agreement, someone has to investigate what happened, piece together information across systems, and find a solution that keeps the process moving. This problem-solving happens constantly and quietly across global businesses.
Historically, automating this work has been extraordinarily difficult. Resolving an exception requires a complex understanding of a company’s unique systems, policies, supplier relationships, and institutional knowledge. Now, advances in AI are finally creating an opportunity to tackle problems that have resisted automation for decades.
We chose to start here because we believe that if we can solve these challenges in the world's most complex enterprises, we can fundamentally change what's possible with enterprise software.
Turning operating knowledge into action
To make all this possible, we built Fragment's Autonomous Context Engine, or ACE.
The ACE connects a company's data, systems, policies, and institutional knowledge into an operational blueprint of how the business works. With that understanding, Fragment's AI agents can investigate discrepancies, determine the appropriate next steps, and execute authorized resolutions across the systems companies already use.
That last part matters. Enterprises have spent decades building their technology infrastructure and they shouldn't have to replace it to benefit from AI. Fragment works across existing systems, allowing companies to start with a defined workflow and see results quickly.
We're already working with some of the world's largest enterprises, where the scale of this challenge is enormous. Graybar, for example, processes roughly 3 million invoices annually, 80% of which require some form of resolution.
These early results reinforce my conviction that AI can take on meaningful operational work today, freeing people to focus their expertise on securing supply, building supplier relationships, and making decisions that move the business forward.
Building for what's next
I'm incredibly grateful to our investors, including 8VC, General Catalyst, and A*, for believing in our vision, and to our early customers for trusting us with some of their most complex operational challenges. This $56 million in funding will help us continue developing the ACE, expand across source-to-pay, and bring Fragment to more of the world's largest enterprises.
I believe the next generation of enterprise software will understand how businesses operate and take responsibility for more of the work required to run them. Companies will be able to grow, adapt, and manage greater complexity without manual work increasing at the same rate.
Enterprise software began with the goal of making the physical economy more efficient. Nearly 140 years later, we have an opportunity to fundamentally reimagine what that software can do. Procurement is where we're proving what's possible, but our ambition extends much further.
I’m proud of this team and what we’ve built. I’m especially grateful for the people that believe in our vision for enterprise software. But the work ahead is what excites me most. If you want to help solve some of the hardest problems in enterprise AI, we’re hiring. Explore our open roles or reach out. We’d love to build what comes next with you.
If your business is ready to make enterprise software work for you, request a demo here: https://fragment.ai/demo
- Pranav