Search Less, Do More - How Partium Revolutionizes Part Search

"Search Less, Do More" is the motto of Philipp Descovich and his startup, Partium. The native Austrian knows how to scale. For over 14 years, he worked in several countries for the US software company CA (now Broadcom), eventually leading the sales organization of the SaaS Business in Europe serving thousands of customers. With this crucial expertise, he led Partium from scratch to a sought-after industrial partner with a unique story.

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Philipp, the story of Partium begins in 2020 with the merger of three startups: the Austrian Humai Technologies, the American startup Slyce, and the Spanish startup Catchoom. To be honest, does it not begin much earlier?

Certainly, because all three had their own stories before the founding of Partium. I myself was the CEO of Humai Technologies, where we first dealt with spare parts search in a cooperation project with the Bosch Group.

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What brought the three of you together?

‍We were all in a similar situation: we had a parts recognition solution and initial customers in our home markets. And we wanted to scale. But that's only possible with a standardized product. However, the developers could hardly find the time for it because they were fully booked with the service business. A catch-22 situation that we could break through with the merger.

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"We want to be the go-to platform for part search."

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Sounds like a win-win situation. How has the merger affected you?‍

As Partium, we were able to develop a super-fast AI-based part search software in a short time, leveraging our combined expertise, and become a licensing provider. On the other hand, thanks to our footprint in Europe and North America, we could expand much better. Whether in Europe or the USA, having local references makes it much easier to gain the trust of new customers.

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How do you know that your transformation from a service provider to a licensor has succeeded?‍

Before the merger, individual development projects accounted for almost 80% of the revenue. Today, it's only 2-5%.
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You have 54 employees in the team, spread across locations in the USA, Canada, Spain, Germany, and Austria. How did you manage to become ONE company?

‍To be honest, Corona helped us. All three companies were in the same situation – employees working from home at all locations. This eliminated any local gossip in the coffee corner. There was no local team advantage in communication. This was very advantageous when merging the teams.
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And later?

After the pandemic, we explicitly promoted socializing between employees.

For example, we give our developers the opportunity to work at another location for an extended period. This is a special feature that our people appreciate a lot. Because developers don't really need to travel to do their job. But this way, they could also get to know each other on a personal level. Thanks to this offer, many colleagues have become friends.

In addition, we hold so-called "Lunch-Breakfasts" twice a month: we virtually connect, Europeans during lunch, Americans during breakfast, and eat together, so to speak.

"Our so-called Lunch-Breakfasts ensure cohesion across time zones. In addition, our developers have the opportunity to work at another location for an extended period."

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Who were your first Partium customers?

‍Deutsche Bahn, Bosch Group, and the American home improvement store chain Home Depot were our first-hour customers. They are still important and valued customers. Among many others.

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Those are big names. When does it even make sense to use Partium?‍

In principle, Partium is worthwhile for all companies with an industrial or technical background that have more than 50 maintenance technicians and generate more than 100 million euros in revenue.

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What is the most compelling argument for your customers to use Partium?

‍Partium speeds up the part search process. Our customers can identify spare parts with Partium within 10 to 30 seconds and about 50 times faster than traditional search methods. This significant boost in efficiency enhances productivity in service, maintenance, and field service. And for those selling parts, it ensures that their customers find parts and do not start looking on other portals.

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Do you have an example of how much time savings in spare parts search can add up to in a year?‍

The savings are substantial. One of our major customers, with 10,000 maintenance technicians, saves up to 16,000 man-days annually thanks to the use of Partium. So, Partium also helps to alleviate companies' difficulties in the face of the skilled labor shortage.

"Partium customers find spare parts about 50 times faster than before."

‍Impressive.

‍However, Partium offers more than just lightning-fast AI-based spare part search. Based on the collected data, our customers gain critical insights into their tools and machines. This knowledge allows them to optimize their inventory management and supply chains, significantly reducing machine downtime and enhancing overall operational efficiency.

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"From 50 maintenance technicians and more than 100 million euros in revenue, it is worthwhile for companies to use Partium."

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Players like Google or OpenAI now offer AI-based image recognition for everyone, with Google, for example, having the Edge AI circle to search feature.
What sets you apart?‍

Partium is precisely engineered to recognize industrial or, better, technical spare and wear parts, qualifying it as a specialized vertical AI application. Partium customers receive a much more precise evaluation tailored to their needs – something the large generic AI solutions simply cannot provide.

"Partium can do more than recognize parts: with the data, our customers can also optimize their inventory and procurement."

‍Sounds like a good run. Is there anything you would do differently from the founding days?‍

I think we're doing quite well. But of course, like any startup, there are sunny days and just as many challenges. Reflecting on our journey, there are two things I would do differently: The first thing you learn in the venture environment is to focus on "growth, growth, and more growth". In retrospect, I would prioritize profitability more strongly.

Secondly, I would adopt a more conservative approach to financial planning and discuss it with investors much earlier. Everything worked out for us, but we lived hand to mouth for a long time. That's risky.

"In retrospect, I would prioritize profitability more than growth and involve investors earlier."

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You are ambitious, Partium is growing. How do you deal with the pressure? ‍

An experienced team is important. Pressure always arises when things get overwhelming, and you can't delegate or exchange ideas. Through the merger, we have brought together very experienced people at all levels – that takes pressure off the gearbox.

"An experienced team takes pressure off the gearbox."

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What makes your heart beat faster than being the CEO of Partium?

‍Partium’s AI-driven spare parts search software has the potential to transform the entire maintenance and after-sales market. For me, it's exciting to be part of it. I learn every day with our team and our customers. It sounds like a cliché. But it's actually true. To embark on entirely new paths with great colleagues and impressive customers is something. I personally consider myself very lucky to be on this journey.

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Your vision?

In five years, we aim for Partium to become the go-to platform for the industry in terms of spare parts search and data. And then, also in Asia and South America. As the Partium platform enables time savings across all areas of the manufacturing industry, we have considerable growth potential. Our total addressable market is estimated to be between 8 to 14 billion USD.

Thank you very much for sharing, Philipp. We wish you all the best and are proud supporters of your journey.

Fancy more info or a demo? Don't hesitate to contact the Partium-Team directly.

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