AireXpert closes $3M seed round and targets big airline customers

AireXpert is ending 2023 in a big way by closing a larger than anticipated seed funding round that will give it more resources for hiring and product development.

The Buffalo startup, whose software manages the complex series of maintenance tasks that are required before commercial planes can take flight, recently closed a $3 million seed round. The company originally targeted $2 million.

Miami-based Reformation Partners, an early growth equity firm, led the round. Launch NY, a repeat investor, also participated.

“We were able to go from a primarily angel-funded and Launch NY-funded company to actually closing a large round,” AireXpert CEO Andy Hakes said. “Bringing an institutional investor into the area, I think that’s really important for the entire ecosystem as well as just for us.”

AireXpert was introduced to Reformation Partners through a Launch NY contact. Along with the funding, the equity firm is expected to share knowledge from how to shorten sales cycles to doing introductions that will lead to future opportunities.

In August, AireXpert started a customization project with United Airlines that will conclude with the airline becoming a multi-year software-as-a-service customer.

“We’re now either supporting, directly supporting or starting to support the world’s most recognizable airline brands, airlines where you hop in an airplane here in Buffalo and also ones you also use when you’re flying out of Toronto, New York, Chicago and the world’s biggest hubs,” Hakes said. “A huge part of the reason that we did the raise was so we could actually reach those airlines that have that global footprint with United being a kind of marquee customer.”

The startup, founded in 2018, is working with large, internationally recognized airlines such as JetBlue.

Reformation Partners has introduced Nita Bhatia, AireXpert COO, to national recruiters as the startup prepares to hire and develop products using the seed funding.

The business expects to add two spots – vice president of engineering and director of sales – to the leadership team as soon as possible. There are plans to double the size of the team by the end of Q2 2024 with four full-time developers and a handful of operations-oriented roles.

Over the last 12 months, the company has grown year-over-year revenue by 112% and expects to hit $1 million in annual recurring revenue by year-end.

AireXpert is the 13th local company to acknowledge a private, growth-oriented round of funding this year. The list includes Azuna ($3 million), Immunaeon ($600,000), Latte ($100,000), Aerovec ($178,000), CleanFiber ($6.7 million), HELIXintel ($11 million), Arbol ($350,000), CaHill Tech ($250,000), FoodNerd ($1 million), LenderLogix ($500,000), Diadem Capital ($115,000), SelectFI ($1.985 million) and AireXpert ($3 million).