Tailor, a ‘Headless’ ERP Startup, Raises $22M in Series A Round

Tailor, an ERP platform with bases in San Francisco and Tokyo, has successfully garnered $22 million through its Series A funding round. Major investors include ANRI, JIC Venture Growth Investments (JIC VGI), New Enterprise Associates (NEA), Spiral Capital, and Y Combinator.

Unlike traditional ERP systems that utilize a singular interface encompassing all necessary functions, they often fall short in terms of flexibility and customization. In contrast, a “headless” ERP system separates the front end (user interface) from the back end (ERP core). As co-founder and CEO Yo Shibata discussed with TechCrunch, this architecture allows the back end to manage vital ERP functions such as inventory and accounting, facilitating independent development or choice of the front end.

Tailor’s platform, Omakase, enables secure API access for AI agents to the ERP system, automating tasks like summarizing customer histories and triggering workflows, according to Shibata.

The industry is quite competitive, featuring established players like SAP and Oracle, as well as niche SaaS providers such as Crater and Stitch. Shibata argues that Tailor’s “headless” and highly customizable approach gives it a strategic edge in this market.

“With coding becoming increasingly commoditized and AI agents taking on more operational tasks—currently around 50% and expected to rise to 90%—companies need systems that are composable and not hardwired,” Shibata said. “We envision a future of ERP that is modular, programmable, and tailored for seamless interaction between humans and machines.”

Initially targeting retail and e-commerce, given their specific challenges around dynamic supply chains, market fluctuations, and geopolitical uncertainties, Tailor’s product is currently available in the U.S. and Japan. Omakase automates workflows and oversees operations including inventory, fulfillment, finance, purchasing, and omnichannel management, Shibata informed TechCrunch.

The company is witnessing a growing interest from other sectors, particularly B2B, and is broadening its offerings beyond retail and e-commerce, according to Shibata.

“B2B operations are inherently more complex than B2C, as they necessitate not only inventory management but also the capability to handle advanced orders and future requests,” Shibata explained. “[B2B businesses] may want to customize their product offerings, thereby complicating logistics.”

Founded in 2021 by Shibata, a former McKinsey consultant and serial entrepreneur, along with CTO Misato Takahashi, Tailor has grown from 10 to around 50 employees across Japan, the U.S., and various other countries since 2022.

When discussing future initiatives, the CEO remarked, “Rather than providing a rigid all-in-one suite, we offer a modular, API-focused platform that businesses can tailor to their specific needs, somewhat like Shopify, which accommodates both prebuilt storefronts and headless commerce. Some clients utilize it as a complete ERP solution, while others employ it as a back end for creating customized tools or interfaces. Our goal is to equip teams with the flexibility to adapt the ERP to suit their unique workflows and tools, rather than adhering to a one-size-fits-all model.”

The four-year-old startup plans to allocate the new funding toward three main initiatives: expanding within the U.S., enhancing product development, and sustaining operations in Japan.

“We are accelerating our U.S. expansion by forming a dedicated go-to-market team and strengthening our presence among mid-sized and enterprise clients,” Shibata shared with TechCrunch. “Additionally, we are heavily investing in product development, especially in improving our ERP modules and AI functionalities. Lastly, we will continue to grow our operations in Japan, where we already maintain a robust market presence, by strengthening our delivery and customer success teams to support future growth.”