Rundoo has raised $30 million in Series B financing led by Battery Ventures, bringing total funding to $48 million as the company scales its AI-first operating platform for independent supply stores across the U.S., Canada and the Caribbean. Existing investors Bessemer Venture Partners and CRV also participated in the round.
Rundoo plans to use the new capital to expand its engineering team in Redwood City, California, grow its go-to-market organization in Chicago and continue developing technology for independent retailers.
The company now serves more than 500 stores across categories including paint, hardware, lawn and garden, and farm and feed.
Founded in 2021 by Stanford University graduates Nick Hershey and Andrew Beckman, Rundoo is building what it describes as an AI-first system of record for independent supply stores.
The platform combines point-of-sale software, ecommerce capabilities, customer relationship management, loyalty programs, general ledger functionality and other operational tools into a unified system.
Rundoo’s broader goal is to give independent retailers access to technology and analytics capabilities that historically have been easier for large national chains to build and deploy.
A central part of the platform is Dooey, Rundoo’s AI agent. Store owners can use Dooey to analyze business information and assist with operational decisions.
For example, a garden center could ask Dooey to create a purchase order based on historical sales, upcoming weather and known landscaping bids in the surrounding area.
The agent can also recommend time-limited promotions that it predicts could increase sales and help execute related customer outreach.
Rundoo said its software is designed to help store owners increase sales, reduce operating costs and improve margins at a time when many independent retailers face competition from big-box chains along with tariffs, economic uncertainty and changing consumer expectations.
The company is also building integrations with major suppliers and manufacturers.
Rundoo works with Benjamin Moore, for example, connecting directly with the paint company’s tint software so independent Benjamin Moore dealers can tint the correct colors and retain that customer information within their systems.
Individual retailers are also using Dooey for daily business analysis.
Berry’s Hardware in Dumas, Arkansas, uses the AI agent to generate a plain-language summary each evening covering areas such as top-selling products, new customers, unusual returns and products sold below predetermined margin thresholds.
Battery Ventures General Partner Michael Brown led the firm’s investment and will join Rundoo’s board.
Brown previously invested in ServiceTitan, whose software platform serves businesses across the commercial and residential trades.
Battery sees similarities between the modernization opportunity ServiceTitan pursued within the trades and the opportunity Rundoo is addressing among the independent stores supplying those businesses.
Rundoo was founded after Hershey and Beckman took different paths following Stanford. Hershey studied mathematics and later worked as a hedge fund trader, while Beckman spent several years working as a software engineer in Silicon Valley.
The founders are now applying that technology background to a segment of retail they believe has historically lacked modern purpose-built software.
KEY QUOTES:
“Our clients supply the materials that allow our communities to build and care for the world around us, and our technology helps them do that better and more efficiently. With continuing competition from big-box stores, macroeconomic challenges like tariffs and oil shocks, and ever-changing consumer expectations, owning an independent supply store is a challenging endeavor. Our platform gives independent store owners the same operational power that much larger corporations use to grow revenue and expand.”
Nick Hershey, Co-Founder And CEO Of Rundoo
“Dooey has become my most trusted partner in the business.”
Brandon Berry, Owner Of Berry’s Hardware
“Independent supply stores are one of the largest categories of American retail that still runs on decades-old systems. The owners aren’t behind the times; their software is. We watched ServiceTitan close that same gap for the trades and become the operating system for an entire industry. Rundoo is doing it for the stores that supply those trades, and the loyalty of Rundoo’s clients tells you everything about where this is headed.”
Michael Brown, General Partner At Battery Ventures
“Supply stores have been historically overlooked by Silicon Valley, despite being the lynchpin for the built-world and the conduit for a massive slice of global commerce. And it turns out these suppliers are every bit as eager to leverage modern technology including AI as their counterparts in other more visible industries. Nick and Andrew have built a world class team obsessed with making life easier for the owners and employees in this massive industry.”
Kent Bennett, Partner At Bessemer Venture Partners
