Why we invested in PartsCloud

Published on February 5, 2025

Today, we proudly announce our investment in PartsCloud, a Germany-based company revolutionizing spare parts management for small and medium-sized enterprises (SMEs) in the mechanical engineering sector. Leopold, investor at Newion, outlines the strategic reasons behind our decision.

Transforming a Critical, Underserved Market, Ripe for Disruption

Economic pressures have heightened the focus on spare parts management as a critical revenue driver for SMEs. With high interest rates, labor shortages, and declining order volumes in industries like packaging, companies are increasingly relying on their spare parts businesses to maintain steady revenue streams. This segment offers substantially higher margins, making it an attractive area for investment and operational improvement.

At the same time, rising customer expectations, coupled with the ongoing digital transformation, have reshaped the market landscape. Customers now demand faster, more reliable spare parts delivery with seamless digital experiences akin to modern e-commerce platforms. Long waiting times and outdated processes are no longer acceptable, pushing OEMs to modernize their spare parts operations to retain customer loyalty and remain competitive.

Spare parts management represents a significant yet historically underserved aspect of the mechanical engineering industry, particularly for SMEs, where many lack the necessary tools and expertise to efficiently manage these operations. With challenges ranging from outdated Excel-based systems to operational inefficiencies, SMEs often face revenue losses and contract risks due to suboptimal spare parts availability.

PartsCloud directly addresses these pain points with a dual-pronged approach:

Logistics as a Service (LaaS): A robust 3PL network operating under PartsCloud’s proprietary playbook, ensuring efficient and reliable logistics.
Software as a Service (SaaS): A platform optimizing inventory management, fulfillment, and customs processes to streamline spare parts operations.

This combination offers SMEs an integrated solution previously reserved for larger enterprises, empowering them to deliver parts globally within 24–48 hours.

Proof of Market

PartsCloud has demonstrated clear proof points of its transition from a logistics-driven service provider to a scalable software-first solution. By expanding its SaaS offerings, the company has shifted its revenue model towards higher gross margins and enhanced scalability.

This transition not only validates PartsCloud’s strategic direction but also emphasizes the significant market need for a dedicated software platform in spare parts management. By bundling logistics and software in a single, seamless solution, the company is creating a scalable and defensible position in the market. Its focus on refining and expanding its SaaS modules ensures continued growth while reducing operational dependencies and increasing profitability.

The Founding Team: Visionary and Complementary

PartsCloud’s founders, Benjamin and Fabian, bring a unique combination of industry expertise and execution capability. Benjamin’s experience advising OEMs on spare parts strategy and Fabian’s background in building solutions for logistics establish a strong foundation. Additionally, the CTO Tiberiu brings technical leadership to refine & scale the product effectively. Their shared vision of becoming the “operating system” for spare parts operations aligns closely with our investment philosophy.

Our Confidence in the Vision

PartsCloud’s approach of integrating logistics and software addresses the fragmented nature of the spare parts industry. By focusing on the core challenge—getting “the right part to the right place at the right time”—it offers SMEs a transformative solution. We are thrilled to support PartsCloud’s journey as it reshapes spare parts management, unlocking untapped potential for SMEs and driving efficiency in the mechanical engineering sector.