Canals, a company focused on applying artificial intelligence to wholesale distribution, announced it has raised $35 million in funding led by Base10 Partners. The investment will support the company’s efforts to streamline interactions between distributors, customers, and suppliers while accelerating product development for the wholesale distribution market.
According to the company, the new capital will be used to reduce friction across thousands of daily supply chain transactions and help modernize the $8.2 trillion wholesale distribution industry. Canals said customers using its platform have achieved results including doubling quote conversion rates and reaching 96% touchless invoice processing, fueling increased demand for AI-driven automation.
Founded to address the operational challenges faced by distributors, Canals has developed AI systems designed to manage messy inputs, incomplete data, and constantly changing business environments. The company says its technology helps eliminate manual data entry and allows teams to focus on strengthening customer and supplier relationships.
Canals currently serves more than 100 distributors, including DSG, The Kendall Group, Locke Supply, and other major distributors. The company has processed more than 8 million sales orders and over $5 billion in payables. Canals also noted that it achieved sales growth exceeding many leading technology benchmarks while operating without venture capital funding prior to this round.
The company has expanded its offerings from an AI-powered sales order entry solution into a broader workflow platform supporting teams across sales, customer service, accounting, purchasing, and receiving. Canals said the funding will help accelerate the development of new solutions aimed at enabling frictionless transactions throughout the supply chain.
KEY QUOTES:
“From conversations with many Canals customers as well as our own contacts in wholesale distribution, we kept hearing the same thing over and over again: Canals is customer-obsessed and delivers outstanding ROI. Its technology and team are clearly the best in the market. They’re outperforming, by orders of magnitude, others marketing similar solutions, so it was an easy decision to partner with Michael and this incredible team. We could not be more grateful for their trust in us.”
Jason Kong, General Partner, Base10 Partners
“Our customers operate in the real world, with messy inputs, imperfect data, and constant change, which made automation difficult to impossible before AI. We’ve built the most accurate AI for wholesale distribution to finally free teams from manual data entry and enable stronger relationships across the supply chain.”
Michael Delgado, CEO And Co-Founder, Canals
“As DSG has expanded to serve customers across electrical, HVAC, plumbing, and waterworks, technology has always been a key enabler of our growth. Canals is now our gold standard for how technology can continue driving the business forward. It not only increases productivity so we can grow more efficiently, but also improves the customer experience and employee-owner experience. There’s a lot of hype when it comes to AI, but Canals is the real deal, the best-in-class product delivering real results that matter.”
Paul Kennedy, CEO, DSG, And Current Chair Of The Board Of Directors Of The National Association Of Electrical Distributors
