Kargo.ai, a San Francisco-based industrial AI company focused on supply chain optimization, has closed a $42 million Series B funding round led by Avenir. The round included contributions from Linse Capital, Hearst Ventures, Lightbank, and existing investors Matter Venture Partners and Sozo Ventures. The capital injection will fuel the company’s expansion as it works to establish real-time inventory data infrastructure across global warehousing and logistics operations.
The funding arrives on the heels of significant traction. Since raising its Series A in 2022, Kargo has grown its enterprise customer base from three to more than 45, including major players like Mercedes-Benz, Wayne-Sanderson, Aurobindo, and Tillamook. The company has deployed over 1,000 AI-powered towers across customer sites nationwide, with annual revenue tripling between 2024 and 2025.
Meeting Growing Demand for Warehouse Automation
The global AI in warehousing market is projected to reach $45.12 billion by 2030, up from $11.22 billion in 2024, according to Grand View Research. That represents a compound annual growth rate of 26.1% as facilities race to implement faster, more accurate automation systems. Rising demand pressures and persistent labor challenges are pushing warehouse operators toward real-time decision-making tools that can keep pace with modern supply chain complexity.
Kargo’s rapid growth mirrors these market dynamics. “Supply chain data infrastructure has been massively challenging to solve for decades,” said Jared Sleeper of Avenir. “We have seen many technology paradigms come and go, but Kargo’s unique ability to provide individual value to every node in the chain is the winning formula. Instead of trying to force everyone onto the same standard or relying on heavily custom hardware solutions, they are introducing a universal interpretation layer that benefits every supply chain player while de-risking and simplifying deployments.”
Funding Will Support Product Development and Market Expansion
The new capital will primarily support the rollout of Kargo Intelligence, an agentic AI platform designed to automate back-office workflows. The system handles invoicing, claims disputes, financial reconciliation, and customer service tasks using visual data captured by Kargo’s camera network. This represents a significant expansion beyond the company’s core loading dock automation offering.
Kargo plans to build additional applications on top of its proprietary data layer, which already captures detailed freight information at warehouse entry and exit points. The funding will also support continued hardware deployments and geographic expansion as the company responds to growing demand from enterprise clients across multiple sectors.
How Kargo Transforms Loading Dock Operations
Kargo converts loading docks into automated data collection points for warehouses and distribution centers. Physical towers and lifts installed at dock doors connect to the company’s cloud platform, capturing detailed information about every shipment without requiring manual scanning or workflow changes. The system inspects incoming freight for damage, verifies contents against Bills of Lading, and pushes inventory updates directly into customers’ existing warehouse management systems.
When discrepancies arise, the platform flags issues immediately and provides photographic documentation that can be used to resolve freight claims quickly. This eliminates much of the manual documentation burden that typically falls on warehouse staff during the receiving process. The system also manages driver check-ins, dock door assignments, and appointment scheduling through a unified interface that adjusts automatically to operational realities like weather delays or equipment issues.
“The dramatic growth we’ve experienced reflects the powerful network effect of the Kargo solution,” said Sam Lurye, founder and CEO of Kargo. “Once Kargo sensors are deployed in a warehouse, customers want Kargo upstream and downstream in their supply chain. We typically see additional orders by the same customers within three months because the data accuracy is recognized immediately and the ROI is often realized in weeks.”
Building a Universal Interpreter for Physical Freight
Kargo was founded in 2019 with the goal of creating what the company calls a “universal interpreter” for supply chains. The core technology uses computer vision to bridge the gap between physical freight movement and the digital systems used to track and manage inventory. Rather than requiring standardized barcodes, RFID tags, or other tracking technologies, Kargo’s cameras and sensors can identify and verify products regardless of how they’re packaged or labeled.
This approach has proven particularly valuable in industries with complex, variable supply chains. Food and beverage companies, pharmaceutical manufacturers, and automotive suppliers have all deployed Kargo’s technology at scale. The platform provides visibility into operations that have historically been difficult to monitor in real time, giving warehouse managers actionable data about receiving accuracy, dock productivity, and freight condition.
Strong Investor Confidence in Supply Chain AI
The Series B round reflects growing investor appetite for AI applications that address tangible operational challenges. “Every stakeholder we spoke with in our diligence process reiterated the measurable value Kargo has added to their business,” Sleeper noted. “The enthusiasm and appreciation for the solution was universal, and Kargo is exactly the type of defensible, deeply integrated AI-powered solution that we get excited to invest in and support.”
The company’s customer retention and expansion metrics appear to validate this assessment. Kargo reports that existing customers frequently expand their deployments within months of initial installation, often requesting coverage for additional facilities once they see results at their first location. This pattern suggests strong product-market fit within the enterprise segment.
