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Keychain: Revolutionizing Retail with AI
The next time you visit a grocery store, you might want to extend your gratitude to an innovative AI startup that ensures your favorite food products are well-stocked, fresh, and safe to consume. This startup, Keychain, is an AI-driven marketplace that facilitates retailers in sourcing consumer packaged goods (CPG). Founded in 2023 by Oisin Hanrahan, the former CEO of Angi (previously Angie’s List) and co-founder of Handy, Keychain has recently announced a $30 million Series B funding round and the launch of KeychainOS, its new AI operating system designed to replace or integrate with traditional enterprise Resource Planning (ERP) tools in manufacturing.
Understanding ERP and Its Market Potential
An ERP system is enterprise software that consolidates essential business functions, such as finance, human resources, manufacturing, procurement, and supply chain management, into a single unified platform. This integration provides organizations with real-time access to information about their operations at any given moment.
The global ERP market is vast and rapidly expanding, with an estimated value of $81.15 billion in 2024, projected to reach $229.79 billion by 2032. Therefore, it is logical for Keychain to aim for a share of this market, especially as they already assist CPG manufacturers with their product search and cataloging software. Unlike existing ERP systems, which can take months to set up and often require multiple add-ons, KeychainOS is promoted as a faster, CPG-specific alternative to platforms like Oracle, QAD, and Plex.
The recent funding round was led by Wellington Management, with participation from BoxGroup and other existing investors, bringing Keychain’s total capital raised to $68 million within just 18 months of its inception.
The Evolution of Keychain
Keychain began its journey with a focused approach to the CPG supply chain. “We started with a big vision: to build the operating system for CPG. Our first product was a search-and-discovery tool that enabled brands and retailers to connect with manufacturers,” Hanrahan shared during a recent video interview with VentureBeat.
The initial product has rapidly expanded, now serving over 20,000 brands and retailers, thousands of manufacturers, and facilitating more than a billion dollars in search-and-discovery transactions each month. Keychain reports that it is currently utilized by eight of the top ten U.S. Retailers and seven of the top ten CPG brands, including notable names like 7-Eleven, Whole Foods, and General Mills.
Expanding Capabilities with KeychainOS
KeychainOS goes beyond just sourcing; it delves into the core functions of manufacturing operations. Hanrahan highlighted that this expansion builds upon Keychain’s existing customer base. Unlike conventional ERP systems, KeychainOS can be implemented in just days and integrates seamlessly with the existing sourcing platform. This innovation addresses a critical need that Hanrahan frequently hears from the market.
“Every four to eight weeks, we host industry dinners with 80 to 200 attendees,” he explained. “A recurring theme is the difficulty of customizing non-CPG software for plant operations and the lack of connectivity among food safety, procurement, planning, and cost accounting.” KeychainOS was developed to resolve these challenges in a more rapid, efficient, and streamlined manner.
“We’re starting with customers who already utilize our search and discovery tools—those paying us millions collectively. It’s a natural expansion,” Hanrahan noted. “Ultimately, it will be ubiquitous—like water. We’ve already seen teams replace existing food-safety software with KeychainOS.”
Innovative Data Handling
One of the key differentiators of KeychainOS compared to traditional ERP platforms is its approach to data entry. Conventional systems often demand extensive manual input, which can hinder operations and lead to errors. “Tools are fragmented and difficult to use,” Hanrahan remarked. “Today’s expectation is for natural-language interfaces and automated data ingestion—not tedious keyboard entry.”
This design choice aims to minimize repetitive data entry by allowing the system to capture and organize information in the background. The company is also enhancing how workers interact with the software on the factory floor, making it more intuitive and efficient.