TLDR: Didero, a New York-based procurement AI firm, has acquired Covalent AI, a fellow provider of AI-powered purchasing solutions. This strategic move aims to enhance Didero’s agentic AI capabilities, enabling more comprehensive automation of supply chain and procurement operations from source to pay, and allowing businesses to automate up to 90% of routine tasks.
Didero, a New York-based startup specializing in artificial intelligence (AI) agents for procurement tasks, announced on July 21, 2025, its acquisition of Covalent AI, a software vendor known for its AI-powered purchasing solutions. This marks Didero’s first acquisition since its founding in 2023, following a successful seed round that raised $7 million in venture capital.
The strategic integration of Covalent AI’s technology is set to significantly bolster Didero’s offerings, enhancing its customers’ ability to leverage agentic AI for fully automated supply chain and procurement operations, from the initial sourcing to final payment. The overarching goal is to enable users to ‘put their supply chains on autopilot,’ a critical advantage in today’s unpredictable trade landscape marked by tariff uncertainties.
Covalent AI, also established in 2023, has developed a platform that automates an impressive 80% of purchasing tasks for procurement and supply chain teams, proactively addressing disruptions and delays before they escalate. By adding Covalent’s capabilities, Didero extends its system to include purchase order management, complementing its original focus on sourcing.
Mohamed Barakat, Head of Product at Didero, commented on the acquisition, stating, ‘Our acquisition of Covalent strengthens our AI agents’ purchase order lifecycle management capabilities—the critical link for true end-to-end automation.’ Barakat further highlighted the tangible benefits for customers, noting, ‘We’ve helped customers reduce lead times by 30% and achieve improved accuracy on invoice reconciliation. This allows procurement teams to automate up to 90% of routine tasks and focus on strategic initiatives that improve margins.’
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While the specific financial terms of the deal were not disclosed, the acquisition underscores Didero’s commitment to advancing AI-driven solutions in the procurement sector. Didero’s implementation approach typically begins with a ‘human in the loop’ process, where existing employees approve AI recommendations. Over time, as the system learns and adapts to the preferences and terminologies of individual teams and companies, users can progressively allow for greater automation of their workflows.
