The San Francisco supply chain tech startup Pallet today said it has raised $27 million in backing for its artificial intelligence product that automates repetitive processes in logistics workflows, such as order entry, portal updates, and quoting.
The “series B” round was led by General Catalyst, with continued support from Bain Capital Ventures, Activant Capital, and Bessemer Venture Partners, and brings its total funding raised to $50 million. According to Pallet, the raise comes amid surging demand from logistics operators under intense pressure to reduce costs as global tariffs and economic headwinds reshape supply chain economics.
According to the firm, its CoPallet product is an AI workforce that completes logistics workflows 10 times faster and at half the cost of traditional staffing. That allows operators to preserve profits without sacrificing service quality as they struggle with mounting tariffs and cost pressures.
Pallet will use the funding to expand its product and engineering teams and scale its AI workforce to meet the needs of its rapidly growing customer base across freight brokers, third party logistics providers, freight forwarders, carriers, and shippers.
“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,” Marc Bhargava, Managing Director at General Catalyst, said in a release. “Pallet is doing exactly that for logistics, and we believe has the potential to be a multi-billion dollar opportunity.”