Sydney-based manufacturing software firm Factory has successfully closed a $3.25 million Series A funding round to accelerate its international growth. The investment, led by Shearwater Capital, is earmarked for a significant expansion into the United States market, beginning in Texas. This strategic move aims to empower small and medium-sized manufacturers who have long been underserved by enterprise-focused technology solutions.
Addressing a Neglected Market
Founded in 2021 by brothers Paul and Michael Lutkajtis, Factory was born from firsthand experience within their family's fabrication business. They identified a critical gap where the vast majority of manufacturers, typically small operations, were neglected by the tech sector. The company's platform is specifically designed to modernize workflows for this "forgotten majority" of the industry.
CEO Paul Lutkajtis highlighted that the industry is widely misunderstood, with many shops still relying on paper-based systems and spreadsheets. He noted that while approximately 93% of manufacturing businesses have fewer than 20 employees, most software tools are built for the top 7%. Factory's mission is to provide an accessible, customizable solution for the small businesses that form the industry's backbone.
Strategic Funding for Growth
The $3.25 million capital injection was spearheaded by Shearwater Capital, with notable participation from US investor Martin Tobias. Existing investors, including Investible, Adrian DiMarco, and Beachhead Capital, also demonstrated continued confidence by contributing to the round. This follows a successful USD$729,358 million seed round in 2023, signaling strong momentum for the startup.
The newly acquired funds will be strategically allocated to fuel the company's next phase of development and expansion. Key priorities include scaling the product and engineering teams to enhance the platform's capabilities and growing the go-to-market team. A significant portion of the capital is dedicated to establishing a strong foothold in the American market.
The American Frontier
Factory is launching its US expansion in Texas, a decision informed by extensive on-the-ground research and positive feedback from local businesses. Co-founder and CEO Paul Lutkajtis is personally relocating to the state to oversee the company's North American operations. This hands-on approach underscores the company's commitment to understanding and serving its new customer base effectively.
Despite potential policy shifts in the US, the company remains optimistic about its prospects in the new market. Lutkajtis reported that the prevailing sentiment among Texan fabricators is highly supportive, buoyed by a national focus on strengthening domestic production. This administrative tailwind is expected to bolster the industry and create a favorable environment for Factory's growth.
This Series A funding marks a pivotal moment for Factory, validating its vision to digitize and support small-scale manufacturing operations. With a proven platform and fresh capital, the company is well-positioned to transition from a local Australian success to an international competitor. Its targeted expansion into the US represents a significant step toward modernizing a vital, yet often overlooked, global industry.