AI Logistics Startup Augment Raises $85M Series A - Deliverr Founder
Augment Secures $85 Million to Revolutionize Freight Logistics with AI
Harish Abbott, previously the founder and CEO of e-commerce shipping startup Deliverr – acquired by Shopify for $2.1 billion in 2022 – possesses extensive knowledge of the logistics sector.
Recognizing the potential for automation within logistics operations, Abbott identified numerous manual processes suitable for AI implementation. This insight led to the launch of Augment last year, a company offering an AI assistant named “Augie” designed to handle repetitive tasks for freight shippers, carriers, and brokers.
Series A Funding and Rapid Growth
Augment announced an $85 million Series A funding round on Thursday, spearheaded by Redpoint, with contributions from 8VC, Autotech Ventures, and other investors. This substantial investment arrives only five months after the startup’s initial emergence from stealth mode, following a $25 million seed round.
According to Abbott, the freight and logistics industry is characterized by professionals dedicating significant time to managing emails, documentation, phone calls, and text messages. Augie functions as a personal assistant, automating these tasks and allowing personnel to concentrate on building relationships and negotiating deals.
Augie’s Core Capabilities
Currently, Augie is capable of executing seven essential functions within the logistics workflow. These include gathering and analyzing pricing proposals from trucking firms, monitoring shipment progress, constructing loads – optimizing truck space through combined shipments – and collecting invoicing documentation for prompt payment.
Traditionally, these processes necessitate extensive communication via phone, email, and text. Augie streamlines these interactions by operating across multiple communication channels, such as voice, email, Slack, SMS, and Telegram.
While specific revenue figures remain undisclosed, Abbott reports that Augment has more than doubled its customer base since securing its seed funding.
Productivity Gains and Customer Validation
Early adopters, including Armstrong Transport Group, are experiencing notable improvements in efficiency after fully integrating Augment into their operations. For example, invoice processing delays have been reduced by 40%.
Jacob Effron, a managing director at Redpoint, based his investment decision on positive feedback received directly from Augment’s clientele. He noted the widespread appreciation for the product and its pervasive use within client organizations.
Future Development and Expansion Plans
The newly acquired funding will be allocated to recruiting 50 engineers and expanding Augie’s feature set. Abbott emphasized the complexity and fragmentation of the market, requiring a substantial engineering team to integrate with the diverse software systems utilized by logistics companies.
Initially focused on the trucking industry, Augment’s long-term strategy involves extending its reach into international shipping and other areas of the logistics landscape.
Competitive Landscape
Augment is not the sole player exploring AI solutions for logistics. Companies like Vooma and FleetWorks also offer AI-powered freight management tools. Furthermore, major shipping companies such as FedEx and UPS are actively investing in their own proprietary AI technologies.
Despite the competition, Abbott remains confident, citing strong adoption rates and Augie’s advanced capabilities. He believes Augie’s ability to reason and act like a human provides significant time savings for users.
