Logistics software startup Pallet has raised an undisclosed amount in a Series B funding round led by General Catalyst, as revealed in a recent press release. The investment will enable Pallet to accelerate the scaling of its artificial intelligence-powered solutions for automating critical logistics processes. Existing investors including Bain Capital Ventures, Activant Capital, and Bessemer Venture Partners also participated in the round, signaling continued confidence in Pallet´s approach to transforming logistics operations.
The logistics industry, valued at multiple trillions globally and responsible for transporting over 20 billion tons of freight annually in the U.S. alone, faces persistent challenges from outdated software and manual workflows. General Catalyst highlighted the urgency of modernization, especially amid global supply chain disruptions and the rising impact of tariffs. Pallet addresses these issues through its artificial intelligence platform, CoPallet, designed to automate back-office tasks such as order entry, quoting, and portal updates. According to the company, CoPallet delivers these functions ten times faster and at less than half the cost of traditional staffing models.
Pallet’s founder, Sushanth Raman, noted that the demand for automation has surged as logistics margins tighten due to tariff-related cost increases and ongoing supply chain uncertainties. He cited examples where mid-sized carriers have used CoPallet to reallocate dozens of employees from repetitive administrative work, resulting in significant cost savings. The latest funding will support the expansion of Pallet’s artificial intelligence infrastructure, which General Catalyst characterizes as the foundation of a ´new operating system for the logistics industry.´
The funding announcement aligns with broader trends in the industry, where companies are under pressure to optimize costs and enhance operational efficiency. A recent PYMNTS Intelligence report found that most U.S. enterprises expect increased expenses due to tariff shifts, prompting many to prioritize cost-cutting, supplier changes, and just-in-time inventory models. These factors are driving more organizations to adopt advanced technological solutions like those offered by Pallet. The company´s latest funding round positions it to capture a growing share of the logistics automation market as digital transformation in the sector accelerates.
