Stockholm-based Tendavo, an AI-enabled platform helping businesses win public procurement contracts, has raised SEK 10 million (approximately €900,000 / $1 million) in its first external funding round.
The round was backed by Aligned VC, Neptunia Invest, and several angel investors. The fresh capital will be used to scale the business across Sweden by expanding the team and accelerating growth before international expansion.
Bringing AI to One of the World’s Largest Markets
Public procurement represents one of the world’s biggest markets, accounting for roughly 15% of GDP across OECD countries. Yet for many small and medium-sized businesses, preparing bids remains a highly manual, bureaucratic process.
Tender documents often stretch to 50–100 pages, and many companies lack dedicated bid teams. As a result, founders and sales managers frequently spend days preparing a single submission, with many bids ultimately rejected over procedural errors.
Tendavo aims to solve this problem by combining human expertise with proprietary AI to streamline the entire bidding process.
AI-Enabled Services Instead of SaaS
Unlike traditional software providers, Tendavo describes itself as an AI-enabled service provider. Rather than selling software licenses, the company delivers the bid-writing service itself, using internally developed AI tools to automate and enhance large parts of the workflow.
According to the company, customers spend less than one hour per tender while achieving twice the industry-average win rate.
Since its founding in 2023, Tendavo has prepared more than 600 public procurement bids for around 70 customersacross a dozen industries, while building a profitable business before raising outside capital.
“Our goal is to democratize public procurement and give small and medium-sized businesses the same bidding power as large corporations,” said founder and CEO Erik Ahlmann.
Investor Confidence in a Proven Model
Lead investor Aligned VC highlighted Tendavo’s combination of early profitability and strong customer value as key reasons for backing the company.
The funding round also included Neptunia Invest and several prominent angel investors, reflecting growing investor interest in AI-native businesses that combine proprietary technology with service delivery rather than traditional SaaS models.
Expansion Plans
The new funding will support hiring across key functions as Tendavo scales its operations throughout Sweden. Looking ahead, the company plans to expand into Europe and eventually the United States, targeting a procurement market worth trillions of dollars globally.
Previously Covered by Startup Mafia PRO
Startup Mafia PRO first featured Tendavo in October 2025 as one of Sweden’s emerging AI startups.
With fresh funding and a profitable business model already in place, the company is now positioning itself to modernize one of the most complex and underserved areas of enterprise workflows through AI-assisted public procurement.
