Kargo Raises $18.4 Million to Develop AI-Powered Products for Supply Chains

Kargo raised $18.4 million to develop new artificial intelligence (AI)-powered products that connect supply chain data to help with inventory management.

The company currently offers Kargo Towers and Kargo Lifts, which are integrated hardware and software solutions that are installed at warehouse loading docks or gateways and use AI-powered cameras to gather information on freight labels, cases and product condition, according to a Friday (June 6) press release.

Using this image data, Kargo’s large language model (LLM) flags overages, shortages, damage and compliance concerns in real time, according to the release.

The data also provides visual proof of the contents and condition of every pallet and keeps inventory data accurate and timely, per the release.

“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,” Kargo Founder and CEO Sam Lurye said in the release. “This capital investment enables Kargo to develop new products that connect supply chain data and rapidly expand our customer base.”

Haomiao Huang, founding partner at Matter Venture Partners, which led Kargo’s latest investment, said in the release that the company is building “the modern infrastructure later for the modern economy.”

“Kargo is redefining how supply chains operate by making freight data visible, reliable and actionable at scale,” Huang said.

A new strategic investor that joined in this funding round is Armada Supply Chain Solutions, a food supply chain provider that added Kargo’s computer vision solution to 240 of its dock doors to enhance its inventory management, according to the release.

“Our clients — predominantly large, multi-unit restaurant companies — benefited almost immediately from increased accuracy and traceability,” Rick Rover, president of Armada’s warehouse division, said in the release.

The retail industry is adopting AI solutions to optimize inventory management, along with other aspects of their businesses, PYMNTS reported in December.

For example, retailers have implemented tools like Gated Recurrent Units to analyze historical sales data, seasonal patterns and market trends, enabling more accurate demand forecasting. This approach reduced instances of stockouts and overstock, leading to better inventory control, minimized waste and improved profitability.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

The post Kargo Raises $18.4 Million to Develop AI-Powered Products for Supply Chains appeared first on PYMNTS.com.