Pallet, which is the company behind CoPallet, the AI workforce for logistics, announced a $27 million Series B round led by General Catalyst, with continued support from Bain Capital Ventures, Activant Capital, and Bessemer Venture Partners. Dan Lewis (CPO at Microsoft, co-founder at Convoy), Amit Agarwal (former President at Datadog), Girish Rishi (former CEO at BlueYonder), Michael Capellas (former CEO at Compaq), Matt McKinney (CEO at Loop), and Aatish Nayak (Head of Product at Harvey) participated in this funding round.
This brought the company’s total funding raised to $50 million. The raise comes during a surge in demand from logistics operators, who are under intense pressure to reduce costs as global tariffs and economic headwinds reshape supply chain economics.
Logistics is a massive industry, but an estimated 10% of total spend still goes to manual administrative workflows. For example, tasks such as data entry, email, and switching between web portals are the norm for completing mission-critical workflows, including taking orders, quoting, and tracking.
CoPallet is an AI workforce that completes these workflows 10 times faster and at half the cost of traditional staffing. And as tariffs and cost pressures mount, Pallet’s AI workforce has become a highly leveraged resource for operators seeking to preserve profits without sacrificing service quality.
How the funding will be used: Pallet will utilize the funding to expand its product and engineering teams, scaling its AI workforce to meet the needs of its rapidly growing customer base, which includes freight brokers, third-party logistics providers, freight forwarders, carriers, and shippers.
KEY QUOTES:
“This wasn’t a story about hype, it was a story about math. Customers ran the numbers. A midsized carrier was able to reallocate 25 employees who were doing repetitive order entry, saving millions. With tariffs driving up costs across the board, the ROI was obvious, and our biggest challenge became keeping up with demand.”
Pallet CEO and founder Sushanth Raman
“General Catalyst believes the next wave of iconic companies will come from applied AI — purpose-built systems that solve real, high-friction problems in massive industries. Pallet is doing exactly that for logistics, and we believe has the potential to be a multi-billion dollar opportunity.”
Marc Bhargava, Managing Director at General Catalyst
