Boon, an AI-driven logistics startup, has secured $20.5 million in funding to revolutionize operational efficiency in the logistics sector. The funding includes a $15.5 million Series A round led by Marathon and Redpoint Ventures, along with a previously undisclosed $5 million seed investment.
With over 60 million fleet vehicles globally, most operated by small and medium enterprises (SMEs), logistics companies rely on an average of 15 to 20 disconnected software tools for operations like routing, accounting, and HR. Boon aims to tackle this inefficiency with its AI platform that integrates data from disparate applications, streamlining operations and boosting productivity.
Boon’s founder and CEO, Deepti Yenireddy, described the platform as “a second employee in the back office,” emphasizing its role in automating critical tasks.
Yenireddy, who previously served as senior director of product at Samsara, leveraged her deep understanding of fleet operations to create Boon. She explained that customers in the logistics sector “want a single place and a single platform” to simplify their workflows, a need that inspired her to launch the company independently.
Boon’s platform initially focuses on revenue and operations workflows, such as optimizing routes and fuel stops. With the new funding, the company plans to broaden its AI solutions to address container loading, staffing, and other operational challenges.
The startup has already gained traction, boasting paying customers managing 35,000 drivers and 10,000 vehicles, with an annual revenue run rate of $1 million after just nine months.
Redpoint Ventures partner Urvashi Barooah highlighted Boon’s potential, noting how first-generation tools have created significant administrative burdens for fleet managers. Boon’s AI solutions promise to alleviate these inefficiencies and deliver exponential gains in productivity.
Yenireddy, who previously founded and sold an AI HR company to Phenom People, has assembled a team of veterans from Apple, DoorDash, Google, Samsara, and Shell. The company is actively hiring as it scales to meet growing demand.
With its innovative approach to leveraging AI in logistics, Boon is positioned to redefine how the industry manages operations, creating a significant opportunity for growth and efficiency.
Featured image: Credit: Boon
