Turkish Airlines VC Arm Backs Vendorside in First AI Deal, Targeting $39.2 Billion Procurement Market
Updated
Updated · Daily Sabah · May 29
Turkish Airlines VC Arm Backs Vendorside in First AI Deal, Targeting $39.2 Billion Procurement Market
1 articles · Updated · Daily Sabah · May 29
Turkish Airlines' venture capital fund made its first AI-focused investment by backing Vendorside, a startup that digitizes procurement and supplier management on a single platform; the deal size was not disclosed.
Vendorside said it will use the funding to build AI agents, strengthen product infrastructure and expand abroad, as Turkish Airlines seeks more effective supply-chain and procurement management.
The startup says its platform handles supplier selection, contracts, invoicing and spending analysis, while a second product, Orchaside, lets companies build custom AI agents for internal workflows.
Internal company metrics claim procurement costs fell by up to 40%, transaction times by 30% to 50%, and operational efficiency rose by 25% to 40%, though those figures were not independently verified.
The investment lands in a fast-growing market: AI-powered procurement was estimated at $3.32 billion in 2025 and is projected to reach $39.2 billion by 2035, with IBM, SAP and Nvidia also pushing deeper into the sector.
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Turkish Airlines, through its venture capital arm Turkish Ventures, has made its first investment in the AI sector by backing Vendorside, an innovative Turkish startup specializing in AI-powered procurement and supply chain solutions. This move marks Turkish Airlines’ commitment to technological advancement and innovation beyond aviation. Vendorside’s platform offers a comprehensive suite of AI features designed to streamline procurement operations, aligning with the rapidly expanding global AI procurement market. The investment reflects a strategic response to the growing need for cost efficiency and operational improvement, positioning both Turkish Airlines and Vendorside at the forefront of digital transformation in their industries.