Pallet Secures $27 Million to Revolutionize Logistics with AI-driven Efficiency
Amid intensifying economic pressures from global tariffs and shifting supply chain economics, Pallet, the company behind the innovative CoPallet AI workforce, has successfully raised $27 million in a Series B funding round led by General Catalyst. The investment, supported further by returning investors Bain Capital Ventures, Activant Capital, and Bessemer Venture Partners, brings Pallet’s total funding to an impressive $50 million. Rather than riding a wave of tech hype, this latest chapter in Pallet’s journey highlights a practical success rooted firmly in tangible financial benefits—real-world math that logistics operators simply couldn’t ignore.
Pallet’s flagship product, CoPallet, has found significant traction in a logistics sector strained by mounting operational expenses and tariff-induced cost inflation. Even though logistics is an $11 trillion industry, operators continue to spend around 10% of their budgets on inefficient manual administrative tasks like data entry, order processing, quoting, and tracking. CoPallet fundamentally disrupts these workflows, achieving results ten times faster and at half the cost of traditional human staffing. This powerful combination has allowed customers to significantly enhance profitability without compromising service standards, a compelling value proposition in the face of economic uncertainty.
CEO and founder Sushanth Raman stresses the simplicity and transparency behind CoPallet’s appeal: “This wasn’t a story about hype, it was a story about math.” In one illustrative example, a midsized carrier leveraged CoPallet to automate repetitive tasks previously performed by 25 employees, reallocating these workers to more strategic roles and realizing millions in annual savings. The clarity of these financial benefits explains why Pallet’s main challenge now is managing skyrocketing customer demand rather than proving the utility of their AI solution.
The Series B investment positions Pallet to significantly expand its product and engineering capabilities, scaling its AI workforce to address the needs of an increasingly diverse and growing customer base, including freight brokers, third-party logistics providers, freight forwarders, carriers, and shippers. General Catalyst’s investment underscores the belief that applied AI—practical, targeted systems designed explicitly to tackle industry-specific pain points—represents the future of technology-led business transformation.
Marc Bhargava, Managing Director at General Catalyst, is optimistic about Pallet’s potential, emphasizing that purpose-built AI solutions like CoPallet are perfectly positioned to become iconic disruptors: “We believe Pallet has the potential to be a multi-billion dollar opportunity.” This perspective is echoed by an impressive roster of investors and industry veterans who participated in the round, including Dan Lewis (Microsoft CPO and Convoy co-founder), Amit Agarwal (former President at Datadog), Girish Rishi (former CEO at BlueYonder), Michael Capellas (former Compaq CEO), Matt McKinney (CEO at Loop), and Aatish Nayak (Head of Product at Harvey). Their backing is a testament to Pallet’s compelling vision and undeniable market traction.
As logistics companies continue to navigate the complexities of tariffs and shifting economic landscapes, CoPallet’s rise is driven by quantifiable efficiency gains rather than transient hype, positioning Pallet to define the future of an industry ripe for transformation through applied AI.