Kargo Raises $42 Million Series B to Expand AI‑Powered Warehouse and Logistics Platform
Kargo, a San Francisco‑based industrial artificial intelligence company that automates warehouse and supply chain operations, has secured a major $42 million Series B funding round, underscoring strong investor belief in the growth of AI‑enabled logistics technologies. The fresh capital will be used to scale Kargo’s platform, advance new product offerings, and accelerate global deployment of its solutions across logistics centers and warehouse facilities.
The Series B round was led by Avenir, a growth equity firm known for backing high‑growth technology companies that address large, evolving markets. Avenir’s participation signals confidence in Kargo’s strategy of transforming the physical supply chain by gathering real‑time freight data and converting it into actionable insights for enterprise customers.
Joining Avenir in the financing were a group of established and strategic investors, including Linse Capital, Hearst Ventures, Lightbank, Matter Venture Partners, and Sozo Ventures, all of which have backed the company’s earlier growth stages and bring domain expertise in industrial technologies and enterprise software.
Founded in 2019 by CEO Sam Lurye, Kargo has developed an AI‑powered system that uses integrated hardware and software, including computer vision cameras and edge computing, to capture detailed freight information without manual scanning. Its Kargo Towers and Kargo Lifts products are installed at warehouse loading docks and gateways, where they automatically verify inbound and outbound freight, detect shortages or damages, and feed accurate data directly into warehouse management systems. This automation reduces manual labor, improves inventory accuracy, and enhances visibility for operators managing complex supply chains.
The company’s technology also supports expanded functionality such as optimized dock scheduling, driver check‑ins, and automated back‑office processes, including invoicing, claims management, and financial reconciliation, through its AI platform. By turning physical loading docks into intelligent data collection points, Kargo aims to create a universal layer of supply chain data that bridges operational gaps across partner networks.
Since its Series A funding round in 2022, when Kargo raised $25 million from investors including Sozo Ventures, Founders Fund, Activant, Human Capital, Strike Capital, Lineage Ventures, and Flexport, the company has seen rapid commercial traction. Enterprise adoption has grown significantly, with Kargo’s annual revenue tripling from 2024 to 2025 and its customer base expanding from only a few initial clients to more than 45 enterprise and Fortune 500 companies. These customers span sectors such as automotive, food and beverage, and logistics services.
The deployment footprint for Kargo’s hardware and AI software has also expanded markedly, with over 1,000 installations of its towers across warehouses in North America, enabling real‑time visibility for freight handling and inventory workflows. This growth reflects rising demand for automation tools that address labor shortages and provide granular supply chain data — challenges that have persisted even after pandemic‑era disruptions eased.
The new Series B funding will further empower Kargo to deepen its product roadmap and invest in enhancements to its Kargo Intelligence platform, which is designed to extend AI automation beyond core data capture and into sophisticated workflow orchestration. With this platform, Kargo aims to streamline complex, repetitive tasks that traditionally required manual human intervention, giving logistics teams more time to focus on strategic operations.
Investors have pointed to Kargo’s strong customer retention, rapid expansion within enterprise accounts, and tangible operational impact as reasons for their continued support. The combination of hardware innovation, AI‑driven software, and real‑world demand for automated inventory and freight verification solutions has positioned Kargo as a category‑defining player in the industrial AI and logistics tech space.
Despite a broader downturn in supply‑chain tech funding over recent years, Kargo’s ability to raise a substantial Series B round highlights the resilience of startups that deliver measurable efficiencies and cost savings to complex operational environments. The company’s growth trajectory demonstrates that logistics automation, powered by AI and edge computing, remains a compelling investment theme for venture capital and strategic backers alike.
With the additional capital, Kargo is poised to accelerate international expansion, enhance its AI and hardware integration, and continue building a foundational data layer that supports seamless, intelligent supply chain management at scale.
