WEST PALM BEACH, Fla., May 29, 2024 /PRNewswire/ -- Cambridge Capital, a leading investment firm focused on the supply chain sector, today announced a majority investment in STAT Recovery ("STAT"), a machine learning-based invoice audit software platform helping retail suppliers optimize revenue by reducing improper deductions and compliance fines from large retailers.
The Cambridge investment, in partnership with Casey Roberts and Todd Reeves (Co-Founders of STAT), will enable STAT to significantly enhance its technology offerings for retail suppliers, expand into additional retail ecosystems, and accelerate growth via significant partnerships with supply chain, transportation, logistics and other relevant companies.
Retail deductions and compliance fines for suppliers are significant and can represent up to 2% of suppliers' retail sales, totaling tens of billions of dollars annually just in the US. STAT has audited over $250 billion in retail transactions for the largest retail suppliers in the world and has the highest recovery rate in the industry, as well as the most comprehensive claims avoidance program. In just over 5 years, STAT has helped retail suppliers recover over $500 million from improper deductions and fines, and avoid countless more, based on over 300 years of cumulative experience in retail compliance and technology.
In conjunction with the investment, Cambridge Capital's Benjamin Gordon and Matt Smalley have joined STAT's Board of Directors. Additionally, Ken Frieze (Chairman of Gordon Brothers), Bill Mines (former SVP, Finance and Strategy, Supply Chain & Logistics at Walmart) and Chris O'Brien (former Chief Commercial Officer of C.H. Robinson) have joined STAT's Board as Independent Directors.
Casey Roberts and Cambridge Capital also decided to name Cambridge Operating Advisor Kamal Sundar as STAT's new CEO to lead future growth and expansion, with Casey becoming President and retaining a significant ownership stake.
Kamal Sundar joins STAT with extensive experience in supply chain technology. He previously served as Senior VP of Supply Chain at ShipBob, where he played a pivotal role in building supply chain and logistics infrastructure for a pre-IPO tech-enabled e-commerce fulfillment platform. Before that, he held several key leadership roles at Amazon, driving growth and innovation in B2C and B2B sectors, and contributing significantly to the rise of Amazon B2B from a $4 billion to a $30 billion business. His earlier career includes roles at Ernst & Young, where he led the Procter & Gamble-EY Alliance, and at IBM, where he honed his skills in supply chain consulting and software development.
"Partnering with Cambridge Capital and bringing Kamal on board as CEO marks an exciting new chapter for our business," said Casey Roberts. "With Kamal's proven expertise in supply chain technology solutions and his track record of driving growth and innovation, we are poised to elevate our offerings and expand our market presence to support suppliers in numerous retailer ecosystems. His leadership will build on our strong foundation and propel us to new heights."
"Joining STAT as CEO is an incredible opportunity to leverage my experience to solve key invoicing challenges for our clients," said Kamal Sundar. "The company's cutting-edge technology and differentiated approach to retail supplier revenue optimization offers a powerful foundation for future growth and innovation. I am excited to work with the talented team at STAT and the seasoned Board leadership, and to continue to deliver exceptional value to our clients, the largest retail suppliers in the world."
Benjamin Gordon, Managing Partner of Cambridge Capital, said, "We are thrilled to partner with STAT and have Kamal join the team as CEO. STAT's impressive track record and financial trajectory, mixed with Kamal's proven leadership and experience, creates a powerful combination that positions the company for exceptional growth. We look forward to working with Casey and the STAT team to achieve new milestones and deliver unparalleled value to the largest retail suppliers in the world."
Matt Smalley, Principal of Cambridge Capital, added, "STAT has demonstrated outstanding performance in revenue optimization and deductions management for retail suppliers, as many of STAT's customers and partners told us directly. We believe the company's strong foundation and innovative approach, coupled with Kamal's strategic vision and Cambridge's resources, will unlock new opportunities for expansion and success. We're excited to support STAT on its journey to new heights."
Ken Frieze said, "As a business leader in the retail-consumer industry for over 30 years, it's clear to me that STAT has one of the most innovative solutions for efficiently untangling the vendor payment process, saving retailers and suppliers precious time, distraction, and money. I look forward to helping STAT bring its market-leading audit recovery solution to every major retailer and consumer products company in North America and beyond."
Bill Mines added, "I have seen both sides of the problem that STAT solves. When I ran supply chain finance for Walmart, we used deductions and fines to reduce bottlenecks in our own supply chain, to benefit Walmart's customers and associates, rather than to penalize suppliers. When I ran supply chain at Diageo, though, I also oversaw teams that faced significant obstacles in understanding all the specific nuances of each retailer's compliance policies, leading to executional challenges and additional costs. Instead of the historical dynamic of sometimes adversarial business partners arguing about funds, STAT's software enables transparent data-driven insights, automated dispute submissions with proper back-up information, and fair outcomes for all. I look forward to helping the STAT team with future innovation and growth."
Chris O'Brien said, "When I was leading go-to-market for a $26 billion annual revenue public company providing logistics and transportation services to both retailers and retail suppliers, I saw this problem firsthand for decades. At the largest companies, annual retail deductions and fines can hit 7 to even 8 figures. STAT not only helps retail suppliers optimize their revenue, but they also help retailers reduce supply chain and back-office inefficiencies. STAT's solution is a win-win for both sides. I cannot wait to leverage my network and experience to elevate the strategic positioning of STAT."
With this Cambridge investment partnership, STAT will have significantly more resources to continue to grow its software, customer, and retail ecosystem portfolio over the next several years.
McDermott Will & Emery LLP served as legal advisor to Cambridge Capital and Corbel Capital provided a senior secured credit facility. Equiteq Advisors Ltd. served as exclusive financial advisor to STAT and Fox Rothschild LLP served as legal advisor to STAT.
About Cambridge Capital:
Cambridge Capital is an investment firm focused on the supply chain sector. The firm provides private equity to finance the expansion, recapitalization, or acquisition of growth companies in transportation, logistics and supply chain technology. Our philosophy is to invest in companies where our operating expertise and in-depth supply chain knowledge can help our portfolio companies achieve outstanding value.
For more information, please visit http://www.cambridgecapital.com.
About STAT Recovery:
STAT Recovery is a machine learning-based invoice audit software platform helping retail suppliers optimize revenue by reducing improper deductions and compliance fines from large retailers. STAT has audited over $250 billion in retail transactions for the largest retail suppliers in the world and has the highest recovery rate in the industry, as well as the most comprehensive claims avoidance program. With a wealth of industry experience and advanced software solutions, STAT offers a unique approach backed by proprietary intellectual property and a scalable delivery model. STAT consistently achieves exceptional financial outcomes for its clients by optimizing recovery processes and instilling best practices to improve the overall supplier-retailer relationship.