BackOps, an AI platform that automates complex operational workflows for companies that make or move physical goods, has raised $42 million in Series B funding to expand its resolution layer across supply chain, finance, and customer service processes. Insight Partners led the round, with participation from existing investors Theory Ventures, Construct Capital, Gradient Ventures and 10VC.
The financing comes just six months after BackOps raised a $26 million Series A, reflecting growing enterprise adoption of its technology across grocery, retail, logistics and distribution.
BackOps plans to use the new capital to expand the number of operational processes its platform can manage while growing its product, engineering and go-to-market teams.
The company is focused on a persistent problem in physical supply chains: much of the work required to resolve exceptions still depends on people manually moving information between disconnected systems, outside partners and internal teams.
A single operational issue may require employees to gather information from enterprise software, communicate with carriers or suppliers, apply company-specific policies, secure approvals and repeatedly follow up until the problem is resolved.
BackOps describes those workers as effectively becoming the “middleware” connecting the systems and organizations that keep supply chains running.
Its platform is designed to automate more of that coordination by carrying approved work through to completion rather than simply generating recommendations or answering questions.
BackOps combines prebuilt integrations with commonly used carrier systems, reusable resolution patterns learned from previous deployments and proprietary information generated from handling large numbers of carrier claims.
The company argues that this approach can reduce the amount of infrastructure enterprises need to build before putting AI into production.
General-purpose AI systems may understand language and business concepts, but they do not inherently understand a company’s specific supply chain procedures, approval requirements, external portals or resolution processes.
Organizations attempting to build those workflows internally may need to map each process, connect multiple systems, establish rules, define human approvals, test integrations and continuously maintain them as external systems change.
BackOps is attempting to package much of that operational infrastructure into a reusable resolution layer.
Customer deployments are beginning to demonstrate the potential economics of that model.
In one deployment, a national parcel platform transferred its carrier claims operation to BackOps.
Since going live in December 2025, the system has processed more than 500,000 claims and resolved 91% without human involvement.
Monthly claims volume increased approximately 150-fold without requiring additional hiring.
BackOps said the automated resolution rate also improved as the system processed more work, increasing from 87% when the deployment began to 99% currently.
The company has also expanded beyond carrier claims into areas including chargeback disputes, complex billing and forecasting.
In another customer deployment involving a retailer with 13 locations, the existing billing workflow consumed an estimated 11,000 employee hours annually.
BackOps reduced the average billing cycle from approximately 28 hours to 14 minutes.
That improvement allowed the retailer to increase operational capacity without proceeding with plans to hire five additional billing specialists and a supervisor, representing approximately $660,000 in projected annual fully loaded costs.
Those results illustrate the type of labor-intensive administrative work BackOps believes agentic AI can increasingly handle.
Rather than replacing entire business functions, the platform is intended to automate repetitive coordination and exception-resolution work that consumes employee time across multiple systems.
BackOps plans to use the Series B financing to extend that model across additional workflows in operations, finance and customer service.
Each workflow creates additional operational information.
As BackOps completes a process, the platform records the context surrounding the issue, the decisions made, the actions performed and the final outcome.
Over time, the company believes that accumulated information can become a layer of operational intelligence that helps customers identify recurring problems, improve standard operating procedures and understand how decisions are being made across their organizations.
That could broaden BackOps’ value proposition from workflow automation toward decision intelligence.
Supply chains generate large volumes of operational exceptions because orders, customers, products, carriers and external conditions frequently differ.
Historically, experienced employees have developed institutional knowledge about how those problems should be handled.
BackOps is seeking to capture those resolution patterns in software and make them reusable across much larger volumes of work.
The $42 million Series B gives the company additional resources to expand that infrastructure as enterprises look for practical ways to deploy AI beyond conversational assistants and into core operating processes.
BackOps’ longer-term opportunity is to become the resolution layer connecting enterprise software, employees and outside organizations involved in physical supply chains, allowing companies to automate more work while preserving rules and approval controls.
KEY QUOTES:
“People have become the middleware between the systems and outside parties that keep supply chains moving. AI changes what is possible, but companies shouldn’t have to spend months building infrastructure before they can start solving real operational problems. Our mission has always been to make enterprise automation dramatically easier to deploy, scale, and manage so customers can carry approved work through to the outcome, quickly and consistently. This funding will help us bring that model to more of the processes that determine operating cost, revenue, speed and service for our customers.”
Sean McCarthy, Co-Founder and CEO of BackOps
“Supply chains generate operational complexity every day, and much of that complexity is still managed by people doing manual, time-intensive work across disconnected systems. BackOps has built the infrastructure layer that automates the resolution of claims, disputes, and order exceptions. As BackOps expands within an organization’s operations, the value compounds as customers can see in real-time decision intelligence across their critical processes and standard operating procedures.”
Kenta Yaegashi, Vice President at Insight Partners
