Pragmatic Secures Impressive $206m in Series D Funding Round

Pragmatic Semiconductor, the flexible IC manufacturer, has successfully completed the first close of its Series D funding round, securing an impressive investment of £162m ($206m). The company is now planning a limited second close for key investors, with an additional £20m ($25m) already allocated.

M&G’s Catalyst and UK Infrastructure Bank co-led the funding round, along with participation from new investors including Northern Gritstone, Latitude, and MVolution Partners. Existing investors such as British Patient Capital, Cambridge Innovation Capital, and Prosperity7 Ventures (the diversified growth fund under Aramco Ventures) also contributed to the funding.

This significant investment will enable Pragmatic Semiconductor to accelerate its expansion plans in the UK and meet the growing demand from customers worldwide. One of the key initiatives includes the construction of the company's 3rd and 4th fabrication lines at its Pragmatic Park facility in Durham.

Over the next five years, Pragmatic Semiconductor aims to build at least eight manufacturing lines in the UK, creating over 500 highly skilled jobs in the North East and Cambridge. Each of these lines will have the capacity to produce billions of ICs, which are essential for various applications across multiple sectors, including consumer, industrial, and healthcare.

One particularly exciting application is the provision of item-level intelligence to trillions of fast-moving consumer goods through smart packaging. This innovation has the potential to revolutionize waste management, recycling, and enable a circular economy. Pragmatic Semiconductor's technology also caters to other use cases such as wearables, sensors, and flexible controllers.

The majority of the investment secured, over 70%, comes from UK investors who recognize the significant opportunities presented by Pragmatic's technology in new applications. Additionally, the potential of Pragmatic's flexible ICs to replace mainstream silicon chips in a wide range of use cases, coupled with their significantly lower carbon footprint, were key factors that attracted investors.

David Moore, CEO of Pragmatic Semiconductor, expressed his excitement about the funding, stating, "This successful Series D round is a clear testament to the massive opportunity for our innovative technology to enable item-level intelligence in virtually any object on the planet. Our global customers value our ultra-thin and flexible form factor, our breakthrough low cost of customization and rapid production cycles, as well as the lower environmental footprint compared to silicon. Scaling our manufacturing capacity on the UK's first-ever 300mm wafer production lines at our site in Durham will enable us to deliver hundreds of billions of chips to customers worldwide over the coming decade."