Kargo Raises $42 Million to Scale AI Warehouse Tech
Series B Funding Fuels Expansion of Automated Loading Docks
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Kargo has secured $42 million in new funding as the warehouse automation company scales its loading dock technology with enterprise customers across multiple industries.
The Series B round was led by growth equity firm Avenir, with participation from Linse Capital, Hearst Ventures, Lightbank and existing investors Matter Venture Partners and Sozo Ventures. The San Francisco-based company said the capital will be used to expand deployment of its technology across warehouse and logistics operations.
Founded in 2019, Kargo develops computer vision-based systems to automate shipping and receiving processes at warehouse loading docks. The systems capture real-time visual data from freight as it moves in and out of facilities to improve inventory accuracy, reduce manual labor and provide documentation for logistics and compliance workflows.
The funding comes as demand increases for automation tools that address labor shortages and data visibility gaps across supply chains. According to Grand View Research, the global market for artificial intelligence in warehousing is projected to grow from $11.22 billion in 2024 to $45.12 billion by 2030, driven by rising volume, tighter delivery timelines and growing complexity in logistics operations.
Since raising its Series A round in 2022, Kargo has expanded its enterprise customer base from three companies to more than 45. Its clients include Fortune 500 companies operating in the food and beverage, pharmaceutical, and automotive sectors, such as Wayne-Sanderson, Aurobindo, Tillamook and Mercedes-Benz. Wayne-Sanderson ranks No. 65 on the Transport Topics Top 100 list of the largest private carriers in North America.
The company said it has deployed more than 1,000 of its systems at warehouse facilities across the United States and has tripled annual recurring revenue from 2024 to 2025.
“Kargo is a category-defining company,” said Jared Sleeper of Avenir. He said the firm was drawn to Kargo’s approach to addressing data challenges in supply chains without requiring companies to adopt uniform standards or highly customized hardware. “They are introducing a universal interpretation layer that benefits every supply chain player while de-risking and simplifying deployments.”
Kargo’s technology uses towers and sensors installed at loading docks and facility gateways. The system verifies inbound and outbound freight against bills of lading, documents damage, flags overages and shortages, and transmits inventory data into customer systems. It also manages dock scheduling, driver check-in and door allocation.
Founder and CEO Sam Lurye said customers often expand their use of the system shortly after initial installation. “Once Kargo sensors are deployed in a warehouse, customers want Kargo upstream and downstream in their supply chain,” Lurye said. He said additional deployments frequently occur within months.
The company said it plans to build additional applications on top of its data infrastructure, including tools to automate back-office functions, such as invoicing, claims management and financial reconciliation.
Generative AI assisted in the creation of this article.
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