BackOps raises $42 million to scale AI-powered supply chain automation
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BackOps raises $42 million to scale AI-powered supply chain automation

BackOps has successfully raised $42 million in a Series B funding round to expand its artificial intelligence-based task resolution platform. The leadership of this round was provided by Insight Partners. Other participants in the round included existing investors Theory Ventures, Construct Capital, Gradient Ventures, and 10VC.

This new funding follows the raising of $26 million in a Series A round six months ago. BackOps plans to use the funds to further expand its operations. Specifically, the company intends to add more supported processes to its task resolution level, as well as grow its product, development, and go-to-market teams.

BackOps serves enterprises involved in manufacturing, distribution, or movement of physical goods. The company's platform helps automate operational work in complex supply chains. This allows companies to implement AI processes without having to build every workflow from scratch.

Supply chain operations often involve numerous systems and external partners, including carriers, suppliers, distributors, customers, and service providers. Typically, the coordination of these processes is done manually by people. BackOps also supports these processes as operational requirements change.

The company collects information, performs data translation between systems, and monitors tasks until their full completion. This manual approach leads to delays and increased operating costs, and can jeopardize customer commitments. BackOps uses AI to automate this task resolution work.

The platform includes pre-configured connections with common carrier systems. Furthermore, the company provides resolution templates derived from previous implementations. BackOps' database contains extensive information gathered during carrier claim resolutions.

BackOps has demonstrated application in the grocery, retail, logistics, and distribution sectors. Clients use the platform for claims processing, invoicing, dispute resolution, and forecasting. For example, one national parcel platform migrated its claims operation to BackOps in December 2025.

Since then, the system has processed over 500,000 claims, resolving 91% of them without human intervention. The monthly volume of claims has increased 150 times without additional hiring. Meanwhile, the automated resolution rate has improved over time: it grew from 87% at the start to the current 99%. BackOps reported similar results when working with other workflows. One retailer with 13 locations used the platform to automate invoicing processes. Previously, this process required about 11,000 man-hours annually.

Thanks to the changes, BackOps reduced the average invoicing cycle from approximately 28 hours to 14 minutes, which allowed for creating additional capacity to handle large volumes. This also avoided a planned team expansion that would have required hiring five billing specialists and one manager.

The company estimates the system implementation cost at approximately $660,000 in projected annual total cost. BackOps plans to extend its resolution processes to operations, finance, and customer service. The company expects customer demand to drive further growth.

Every completed workflow records its context, decisions made, actions taken, and outcomes. This information forms a growing source of operational analytics. Clients can use this record to identify recurring patterns, as well as to strengthen processes and improve operational decisions.

Co-founder and CEO of BackOps, Sean McCarthy, stated that people have become intermediaries connecting supply chain systems, and the company aims to reduce reliance on manual coordination. The company's platform is designed to help approved work achieve desired results faster.

Investor Insight Partners noted that BackOps has created infrastructure for handling claims, disputes, and order exceptions. The investor also highlighted the potential of accumulating intelligent solutions within workflows.

The latest funding will provide BackOps with additional resources to expand its platform and support the company's efforts to automate more complex enterprise processes. Currently, BackOps is focused on expanding its AI resolution level to more critical business operations.

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