U.S. based on demand manufacturing marketplace Xometry has commenced its planned European expansion with the acquisition of Shift.
Headquartered in Munich, Germany, Shift provides CNC machining, sheet metal processing, and post-processing services across a network of more than 25 European partners. Terms of the transaction have not been disclosed by either party. Earlier in July 2019, a Series D funding round for Xometry led by Greenspring Associates raised $55 million to contribute to the company’s global expansion.
“Global expansion is a key step for us,” said Xometry CEO Randy Altschuler. “Many of our customers, like BMW and Bosch,” which also contributed funds in July’s series D, “have a global presence and we can serve more of their needs with a global network”
“Our AI-driven algorithms and intelligent sourcing platform give us a competitive advantage as we expand across new geographies and manufacturing technologies.”
Establishing Xometry Europe
Founded in 2017, Shift is a company of between 11 and 50 employees fulfilling orders from customers in manufacturing and CNC workshops. In the official acquisition press release, the company has been deemed the largest on demand manufacturing marketplace in Europe, posing a bold claim in the face of competing businesses like Protolabs, operating out of multiple European sites, and 3D Hubs which is headquartered in Amsterdam.
Lead investors in Shift include Berlin headquartered Cherry Ventures, which specializes in early-stage funding. In the terms of the acquisition, Cherry will now become investors in Xometry. “The custom manufacturing industry is a massive global market of over $100 billion,” comments Christian Meermann, Founding Partner, Cherry Ventures. “We’re excited for Shift to utilize Xometry’s industry-leading technology as well as leverage the global manufacturing expertise from other Xometry investors, including BMW i Ventures and Robert Bosch Venture Capital.” To date, Cherry has contributed €2 million in funding to Shift, creating a total of €4 million across the company’s lifetime.
Dmitry Kafidov, a co-founder of Shift, is to become the Managing Director of Xometry Europe, effective immediately. “We’re eager to leverage Xometry’s technology to continue to scale our business in Europe,” comments Kafidov, “We look forward to providing our customers additional manufacturing capabilities, including additive manufacturing and injection molding.”
Kafidov’s fellow co-founder Alexander Belskiy, is to become Head of Technology for Xometry Europe. Belskiy believes, “There are huge opportunities in enabling Xometry’s Instant Quote Engine and other product features in the European market.”
The Xometry manufacturing network
Through its network of manufacturing partners, Xometry provides CNC machining, sheet metal, 3D printing, injection molding, urethane casting, finishing, and design services. Prior to the acquisition of Shift, these services were predominantly provided by Xometry in the U.S., coordinated by offices in Maryland and Kentucky.
Since the company launched in 2013, Xometry has raised a total of $118 million from investors to expand its operations. Currently, Xometry employs over 300 people, a workforce that has grown from 100 in the past two years.
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Featured image shows an array of on-demand parts created by Xometry. Image via Xometry.
