Pallet Raises $27M Series B Funding Led by General Catalyst to Expand AI-Driven Logistics Workforce
Pallet, the innovative company behind CoPallet, an artificial intelligence (AI) workforce designed to automate administrative tasks in logistics, has announced the successful close of its $27 million Series B funding round. The round was led by venture capital firm General Catalyst, with continued backing from Bain Capital Ventures, Activant Capital, and Bessemer Venture Partners. With this latest injection of capital, Pallet has now raised a total of $50 million to date.
This significant milestone comes at a critical juncture for the logistics industry, which is currently undergoing rapid transformation due to shifting economic pressures, evolving global trade dynamics, and technological disruption. The $11 trillion logistics market is facing unprecedented cost and efficiency challenges, particularly as tariff increases and economic headwinds continue to reshape the global supply chain landscape. Industry operators — including carriers, brokers, freight forwarders, and shippers — are increasingly turning to advanced technologies to reduce costs, maintain service levels, and remain competitive.
The Manual Burden in Logistics: A $1 Trillion Inefficiency
Despite its vast economic footprint, the logistics industry still relies heavily on manual administrative processes. Experts estimate that approximately 10% of total logistics spend — equivalent to over $1 trillion — is tied up in outdated, labor-intensive workflows. Common back-office operations such as order entry, rate quoting, shipment tracking, and email correspondence are still largely performed manually, often requiring staff to toggle between multiple web portals and legacy systems.
This inefficiency not only creates bottlenecks but also imposes substantial costs on logistics providers. As companies scramble to streamline operations in the face of rising tariffs and softening global demand, AI-driven automation is emerging as a high-leverage solution — and Pallet is leading the charge.
CoPallet: Redefining the Future of Logistics Operations
At the heart of Pallet’s offering is CoPallet, an AI-powered digital workforce built specifically for logistics. Unlike generic automation platforms or large language models designed for broad applications, CoPallet is a purpose-built solution that has been trained and optimized for the specific tasks logistics professionals face every day.
CoPallet uses advanced AI to execute repetitive and time-consuming workflows up to 10 times faster than human staff — and at approximately half the cost. Whether it’s entering orders into transportation management systems, generating rate quotes, updating shipment statuses, or responding to customer inquiries, CoPallet operates with impressive speed and precision. The result is not only a dramatic reduction in labor costs, but also improved consistency, accuracy, and service reliability.
“This wasn’t a story about hype, it was a story about math,” said Sushanth Raman, CEO and founder of Pallet. “Our customers crunched the numbers and saw real impact. One mid-sized carrier reallocated 25 full-time employees who had been handling repetitive data entry tasks, which translated to millions of dollars in annual savings. With tariffs pushing costs higher across the board, the return on investment was compelling. In fact, our biggest challenge quickly became keeping up with demand.”
Strategic Use of Series B Funding
With the logistics industry undergoing an accelerated shift toward automation, Pallet plans to use the new funding to scale its AI workforce, invest in product innovation, and grow its engineering and technical teams. The company aims to rapidly expand its customer base and enhance platform capabilities to meet increasing demand from a broad range of logistics operators.
Pallet’s clientele includes freight brokers, third-party logistics (3PL) providers, freight forwarders, carriers, and shippers. As more companies seek to digitize their operations and gain a competitive edge, Pallet is positioning itself as an indispensable partner in their digital transformation journey.
“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,” said Marc Bhargava, Managing Director at General Catalyst. “Pallet is doing exactly that in logistics, one of the world’s largest and most complex sectors. We believe the company has the potential to become a multi-billion dollar category leader.”
A Strong Network of Strategic Backers
The Series B round also attracted an impressive list of individual investors and advisors who bring deep operational and industry expertise. These include:
- Dan Lewis, Chief Product Officer at Microsoft and co-founder of Convoy
- Amit Agarwal, former President of Datadog
- Girish Rishi, former CEO of Blue Yonder
- Michael Capellas, former CEO of Compaq
- Matt McKinney, CEO of Loop
- Aatish Nayak, Head of Product at Harvey
Their involvement underscores the industry confidence in Pallet’s vision and technology. These investors are not only providing capital but also strategic guidance and mentorship, helping the company navigate the fast-evolving landscape of enterprise AI.
The Applied AI Advantage
While much attention in the AI space has focused on general-purpose tools and foundation models, Pallet’s success highlights a growing trend toward vertical-specific AI applications. By focusing narrowly on the logistics sector, Pallet has been able to build domain expertise into its models, enabling more accurate, context-aware, and efficient task execution than horizontal solutions can typically offer.
This approach aligns with a broader industry realization: the most impactful use cases for AI in the near term are likely to be those that directly improve efficiency, reduce cost, and eliminate manual work in industries with high-friction workflows — and logistics fits that description perfectly.
As the global supply chain continues to evolve, the need for flexible, intelligent, and scalable workforce solutions will only intensify. Pallet’s technology offers logistics operators a way to future-proof their businesses — not by replacing human talent, but by augmenting it with AI that handles routine tasks, freeing up teams to focus on more strategic, customer-centric activities.
With strong backing from top-tier investors, a rapidly growing customer base, and a clear focus on solving real-world problems, Pallet is poised to become a transformative force in logistics automation.
As Raman puts it, “We’re not just building bots. We’re building an entirely new way to think about work in logistics. And we’re just getting started.