AI logistics software startup Pallet, creator of CoPallet, has raised $27 million in Series B funding to revolutionize global freight operations through cutting-edge automation, boosting operational efficiency, streamlining logistics workflows, and easing global supply chain pressures.

The funding round, led by General Catalyst, reflects growing investor confidence in Pallet’s AI-powered platform, CoPallet, which aims to modernize the logistics industry’s approach to order entry, quoting, and portal updates. These tasks, often bogged down by manual processes, now occur ten times faster and at half the cost with CoPallet.

“With tariffs driving up costs across the board, the ROI was obvious, and our biggest challenge became keeping up with demand. A mid-sized carrier was able to reallocate 25 employees who were performing repetitive order entry, saving millions of dollars, according to the post,” said Pallet founder Sushanth Raman in the post.

Logistics Industry Faces Urgent Need for Change

Despite being an $11 trillion global sector, logistics still depends on legacy systems. With over 20 billion tons of freight moved annually in the US alone, the demand for AI logistics software that can handle high-volume back-office operations is undeniable.

“Logistics infrastructure must evolve now,” said General Catalyst in a company blog post. Their investment in Pallet supports the startup’s bold mission to deliver a new operating system for freight management—precisely when enterprises face tighter margins and rising tariffs.

Led by CEO Sushanth Raman, Pallet’s CoPallet platform acts as a digital workforce. It performs with human-level precision, eliminating bottlenecks in logistics workflows for freight brokers, third-party logistics providers, shippers, carriers, and freight forwarders.

CoPallet’s smart automation ensures faster throughput while reducing dependency on manual staffing. Pallet plans to scale its engineering and product teams to match the growing demands of its expanding client base.

High-Profile Backing Boosts Pallet’s Momentum

Joining General Catalyst in this Series B round were Bain Capital Ventures, Activant Capital, Bessemer Venture Partners, and top industry figures, including Dan Lewis, Amit Agarwal, Girish Rishi, Michael Capellas, Matt McKinney, and Aatish Nayak.

This latest round brings Pallet’s total funding to $50 million. The capital injection will enable Pallet to enhance its AI infrastructure and expand its reach, particularly as global firms shift suppliers and redesign operations to cope with economic uncertainty.

An April survey of US companies with over $1 billion in revenue revealed that nearly all expect higher costs for goods due to new tariffs. In response, 9 out of 10 COOs plan to cut costs and boost efficiency. That’s where AI logistics software like CoPallet comes in—offering a resilient, scalable solution at a critical moment in supply chain history.

Pallet’s vision aligns with broader global efforts to shift from manual systems toward intelligent, AI-driven logistics. As cost and logistics pressures mount, Pallet’s innovative platform helps enterprises stay agile.

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