Kargo, a leader in industrial artificial intelligence (AI) technology, has officially raised $18.4 million in a fresh line of funding.
Led by Matter Venture Partners, the funding round in question saw further participation coming from previous investors Sozo Ventures and Founders Fund, as well as existing customers and new strategic investors Lineage and Armada Supply Chain Solutions, LLC.
Beyond that, Kargo also took this opportunity to confirm the successful rollout of its computer vision solution which, on its part, has been designed to automate inventory management across the food supply chain provider’s national network of warehouse hubs.
“Comprehensive, proprietary data is the key to unlocking the full potential of AI. Kargo has become the trusted provider of inventory data to leading global supply chains. AI plays a critical role in supply chain integrity and we’re helping customers across industries build their AI stack to connect their warehouses, back offices and customers,” said Sam Lurye, founder and CEO of Kargo. “This capital investment enables Kargo to develop new products that connect supply chain data and rapidly expand our customer base.”
Before the advent of its computer vision solution, though, the company has been known to provide Kargo Towers and Kargo Lifts, integrated hardware and software solutions that effectively automate freight data capture and verification.
In essence, Kargo Towers are installed at warehouse loading docks or gateways, using AI-powered cameras to gather information on freight labels, cases and product condition. Once the required information is captured, the company deploys its LLM technology to structure the image data into coherent inventory information, and therefore, flag exceptions (i.e. overages, shortages, damage or compliance concerns) in real-time.
The Kargo Lift, on the other hand, is purpose-built for forklifts and automated guided vehicles (AGVs), extending Kargo’s AI capabilities to a new vantage point.
Talk about the impact of these technologies on a slightly deeper level, we begin from the fact that, together, they have empowered Kargo to achieve 7x year-on-year customer growth. As a result, the company now serves around 25 customers, including Armada, Tyson, Lineage, Tillamook, Utz, Wayne Sanderson, Aurobindo, DB Schenker, and NFI. .
Markedly enough, Kargo also manages over 500 active towers and forklifts in the field.
Next up, the technologies help the company process $200 million worth of inventory every day. This translates to handling approximately 20,000 pallets per day and 2M scans per week.
“Kargo is redefining how supply chains operate by making freight data visible, reliable, and actionable at scale,” said Haomiao Huang, Founding Partner at Matter Venture Partners. “Their rapid customer adoption, real-world impact, and deep technical moat make them a category-defining company in logistics AI. We’re proud to back Kargo as they build the modern infrastructure layer for the physical economy.”
Another detail worth a mention is rooted in Kargo’s NRR of 215%. With customers quick to adopt, adapt, and act on increased visibility to valuable supply chain data, it all treads up a long distance to double the company’s hardware deployments within the first year.
Apart from that, we must also mention how Kargo’s platform takes no more than 47 days in the context of going from signature to live. More on that would reveal how Kargo doesn’t rely on customers’ infrastructure to install their products, mandating minimal change to existing processes.
“Kargo played a critical role in our ability to successfully implement AI in a meaningful way. We were live in under a month, significantly enhancing our inventory management. Our clients – predominantly large, multi-unit restaurant companies – benefited almost immediately from increased accuracy and traceability.” said Rick Rover, President of Armada’s warehouse division. “Our commitment to reliability, agility, and resilience ensures exceptional service that consistently benefits our clients.”
