Kargo, a leader in industrial artificial intelligence (AI) technology for supply chain and logistics, announced the closing of a $42 million Series B funding round. The round was led by Avenir, with participation from Linse Capital, Hearst Ventures and Lightbank, and previous investors Matter Venture Partners and Sozo Ventures. The new capital will be used to accelerate Kargo’s mission to transform real-time inventory data infrastructure across warehousing and logistics globally.
Since its Series A in 2022, Kargo has expanded its enterprise customer base from three to more than 45, partnering with Fortune 500 companies across the food and beverage, pharmaceutical, and automotive sectors, including Wayne-Sanderson, Aurobindo, Tillamook and Mercedes-Benz. Kargo’s ability to deliver its AI platform at scale has led to large-scale customer deployments spanning the country, with more than 1,000 towers deployed.
“Kargo is a category-defining company. Supply chain data infrastructure has been massively challenging to solve for decades. 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,” said Jared Sleeper of Avenir. “Every stakeholder we spoke with in our diligence process reiterated the measurable value Kargo has added to their business. 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.”
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According to Grand View Research, the global AI in warehousing market is expected to grow from $11.22 billion in 2024 to $45.12 billion by 2030, reflecting a compound annual growth rate of 26.1% as warehouses seek faster, more accurate automation and real-time decision-making to meet rising demands and labor challenges. Kargo’s growth rate reflects this trend, with annual revenue tripling from 2024 to 2025.
“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. We’re a trusted partner fully embedded in their infrastructures.”
Kargo turns the loading dock into a source of accurate, actionable data for warehouses and logistics centers. With physical Kargo towers and lifts at docks and gateways, hardware sensors seamlessly connect to the Kargo platform to automate all shipping and receiving operations without scanning, manual intervention or change management. The system automatically inspects arriving freight for damage, verifies shipments against Bill of Lading (BOL), and pushes inventory data directly to customers’ systems for real-time status and compliance. Issues are flagged instantly and documented with irrefutable visual evidence, enabling teams to resolve freight claims efficiently while managing customer relationships. The platform also consolidates scheduling, driver check-in, and dock door allocation into a single seamless workflow that automatically adapts to real-world conditions, such as inclement weather, allowing teams to make informed decisions about labor allocation, Overages, Shortages & Damages (OS&D) drivers and operational best practices.
SOURCE: Businesswire