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Tailor Secures $22 Million to Revolutionize ERP with AI-Powered ‘Headless’ Platform
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San Francisco and Tokyo-based Tailor, an enterprise resource planning (ERP) platform, has successfully closed a $22 million Series A funding round, signaling strong investor confidence in its innovative approach to ERP systems. The funding was led by prominent investors including ANRI, JIC Venture Growth Investments (JIC VGI), New Enterprise Associates (NEA), Spiral Capital, and Y Combinator.
What is ‘Headless’ ERP and Why Does It Matter?
Traditional ERP systems often present a rigid, single-interface structure, limiting customization and flexibility. Tailor is pioneering a “headless” ERP system, which separates the front-end user interface from the back-end ERP core. This allows businesses to independently select or develop the front end while the back end manages critical functions such as inventory management and accounting.
did You Know? the global ERP software market is projected to reach $78.40 billion by 2026, growing at a CAGR of 10.2% from 2019 [[1]].
Omakase: AI-Driven Automation
Tailor’s system, Omakase, leverages this headless architecture to enable secure API access for AI agents. This allows for the automation of tasks like summarizing customer histories and triggering workflows, significantly enhancing operational efficiency.
tailor’s Competitive Edge in the ERP Market
The ERP landscape is dominated by established giants like SAP and Oracle, alongside vertical SaaS tools such as Crater and Stitch. yo Shibata,co-founder and CEO of Tailor,believes that their “headless,” highly customizable approach provides a significant competitive advantage. He emphasizes the growing importance of adaptable systems in an era where AI handles an increasing portion of operational tasks.
According to Shibata, “As coding becomes increasingly commoditized and AI agents handle more of the operational load – already around 50% and growing toward 90% – businesses want systems that can be composed, not hardcoded. we believe the future of ERP is modular, programmable, and built for a world where humans and machines collaborate seamlessly.”
Expanding Beyond Retail and E-Commerce
Initially, Tailor’s product targeted the retail and e-commerce sectors, addressing challenges related to dynamic supply chains, market expansion, and geopolitical uncertainties. Omakase automates workflows and manages operations such as inventory, fulfillment, finance, purchasing, and omnichannel management. However, the company is now experiencing increased demand from other sectors, including B2B, and is expanding its services accordingly.
Pro Tip: When selecting an ERP system, consider the long-term scalability and adaptability of the platform to ensure it can meet your evolving business needs.
Shibata notes that “B2B operations are far more complex than B2C businesses, as they involve not only selling inventories but also managing future orders, advanced orders, and more. [They] might want to personalize some of their product lineups,which will then add more complexity to the operational side.”
Tailor’s Growth and Future Plans
Founded in 2021 by Yo Shibata, a former McKinsey consultant, and Misato Takahashi, CTO, Tailor has experienced rapid growth, expanding from 10 employees in 2022 to approximately 50 employees across Japan, the U.S.,and other countries. The company plans to allocate the new funding to U.S. expansion, product development, and scaling its Japan operations.
The company’s long-term vision is to provide a modular, API-first platform that companies can assemble and adapt to their specific needs, similar to how Shopify supports both prebuilt storefronts and headless commerce. This approach allows customers to use Tailor as a full-stack ERP or as a back end for building custom tools and interfaces.
Key Priorities for Funding Allocation:
- U.S.Expansion: Building a dedicated go-to-market team and deepening presence among mid-sized and enterprise customers.
- Product Development: Investing in extending ERP modules and AI capabilities.
- Japan Operations: Scaling delivery and customer success teams to support growth.
Tailor’s Key Metrics
| Metric | Value |
|---|---|
| Funding Round | Series A |
| Amount raised | $22 Million |
| Founding Year | 2021 |
| Employee Count (Current) | Approximately 50 |
The Evolution of ERP Systems
ERP systems have evolved significantly since their inception. Initially focused on manufacturing resource planning (MRP), they have expanded to encompass all aspects of enterprise management, including finance, human resources, and supply chain management [[2]]. The shift towards cloud-based ERP solutions has further increased accessibility and reduced costs for businesses of all sizes.
The integration of AI and machine learning into ERP systems represents the next major evolution, enabling predictive analytics, automation, and improved decision-making. “ERP is Enterprise Resource Planning… ERP management’s object is the enterprise’s overall business,including sales,procurement,production,finance,quality,and other businesses,as well as the connection between these businesses” [[3]].
Frequently Asked Questions About ERP Systems
- What are the main components of an ERP system?
- ERP systems typically include modules for finance,human resources,supply chain management,manufacturing,customer relationship management (CRM),and business intelligence.
- What are the benefits of implementing an ERP system?
- Benefits include improved efficiency, better decision-making, increased visibility across the
