New IPO filing: $XMTR Xometry – Marketplace for excess Manufacturing Capacity

$XMTR Xometry, a marketplace for excess manufacturing capacity filed to go public. Founded in 2013 and based in Maryland, the service connects companies with manufacturers with excess production capacity around the world.

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CEO and co-founder Randy Altschuler started $XMTR Xometry with co-founder Laurence Zuriff to help companies looking to build custom parts have the ability to do so in a digital way.

$XMTR Rather than working the phones or starting an email chain, they can go into the Xometery marketplace, define parameters for their project and find a qualified manufacturer who can handle the job at the best price.

$XMTR helps customers

Finds work tailored to individual shops

Pay only 30% up front

Eliminate the quoting process

Handle the sales and marketing

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The company had built relationships with 5,000 manufacturers around the world and had 30,000 customers using the platform.

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$XMTR will look at raise about $100M – $200M to repay loan debt, which amounted to $15.8M and for expansion.

Xometry cofounder and CEO Randy Altschuler

$XMTR closed 2020 with $141M in revenue — a 76% jump from $80.2M in 2019 revenue and 268% from 2018’s $38.4M. It had $31M in annual losses.

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Xometry $XMTR has raised over $200M in funding since and most recently raised $75M in Sep 2020 at $600M in valuation.

$XMTR has 386 employees. It acquired competitor MakeTime in July 2018.

The market for on-demand manufacturing is about $7B and will grow to $9B by 2025. Valuation is not know yet, but will be closer to the IPO day.

Analysis

The pros are high margin marketplace business, with scalable market opportunity. It fills a big need in this JIT (Just in Time) manufacturing and inventory economy. The cons are the huge losses and lower take rate 15%.

I am going to wait on this again and not put it on my watchlist yet.