Tailor, a ‘headless’ ERP startup, raises $22M Series A

Tailor, an innovative enterprise resource planning (ERP) platform based in San Francisco and Tokyo, has successfully raised $22 million in a Series A funding round. The investment round saw participation from notable firms such as ANRI, JIC Venture Growth Investments (JIC VGI), New Enterprise Associates (NEA), Spiral Capital, and Y Combinator. Unlike traditional ERP systems that bundle all functionalities into a single interface, Tailor's approach offers a 'headless' ERP solution. This design separates the user interface from the core ERP functions, as explained by co-founder and CEO Yo Shibata. The back end is responsible for crucial operations like inventory management and accounting, allowing businesses to customize the front end according to their specific needs. Tailor's system, named Omakase, leverages APIs to enable AI agents to seamlessly connect with its ERP. This capability allows for the automation of various tasks, including summarizing customer histories and triggering workflows. As the market is filled with competitors, including established giants such as SAP and Oracle, Shibata emphasizes that Tailor's flexibility and customization options position it favorably against these legacy systems. "As coding becomes more accessible and AI agents take on a larger portion of operational tasks—currently around 50% and projected to rise to 90%—businesses increasingly seek modular systems that can adapt to their needs instead of rigid, hardcoded solutions," Shibata asserted. "We envision a future of ERP that is modular, programmable, and designed for seamless collaboration between humans and machines." Initially focusing on retail and e-commerce sectors, which encounter challenges from fluctuating supply chains and geopolitical uncertainties, Tailor is now witnessing rising interest from other industries, including B2B operations. Shibata noted that B2B environments are inherently more complex, requiring sophisticated inventory and order management. Founded in 2021 by Shibata, a former McKinsey consultant and serial entrepreneur, alongside CTO Misato Takahashi, Tailor has expanded its team to about 50 employees across Japan, the U.S., and beyond, up from just 10 in 2022. Looking ahead, Shibata shared the startup’s vision of providing a flexible, API-first platform that companies can tailor to their operational needs, similar to how Shopify functions for e-commerce. The funds raised will be directed towards three main priorities: scaling operations in the U.S., enhancing product development, and strengthening efforts in Japan. "We aim to build a dedicated go-to-market team in the U.S. to better serve mid-sized and enterprise clients," Shibata explained. "Additionally, we are committed to advancing our product, particularly in expanding our ERP modules and AI capabilities, while also bolstering our delivery and customer success teams in Japan to support our growth initiatives."