Steph Curry Invests in AI Startup Revolutionizing Food Supply Chains

The Challenges of Modernizing Food Supply Chains

Food supply chains are complex and often inefficient. Receiving orders through diverse channels creates difficulties, and staff frequently dedicate significant time to manual data entry into outdated software systems. Maintaining regulatory compliance often relies heavily on the use of spreadsheets.

For many years, software companies have attempted to modernize the processes governing the global distribution of perishable items, though success has been inconsistent.

Burnt: An AI-Driven Solution

A Y Combinator-backed startup, Burnt, proposes that AI agents – software capable of automating tasks traditionally performed by humans – can achieve success where conventional enterprise software has fallen short within the trillion-dollar U.S. food market.

The company, focused on automating supply chain tasks using artificial intelligence, has secured $3.8 million in seed funding. This investment was led by Penny Jar Capital, a venture firm supported by NBA star Steph Curry, and included participation from Scribble Ventures, Formation VC, and several angel investors, notably Dan Scheinman.

The Founder's Background and Insight

Joseph Jacob, co-founder and CEO of Burnt, possesses a unique understanding of the food industry. His family has been involved in the seafood supply chain since his great-grandfather pioneered shrimp exports from India to the U.S. in the 1930s.

Jacob spent his youth in India and later gained practical experience working on the factory floor of a shrimp processing facility. This experience provided him with a deep understanding of the intricacies of the food and restaurant sectors.

Upon returning to the U.S. and managing substantial seafood imports, he identified significant operational inefficiencies.

Recognizing Inefficiencies in Existing Systems

“I oversaw the purchase of hundreds of millions of pounds of seafood, yet all tracking was done using Excel spreadsheets and a 20-year-old ERP system,” Jacob explained to TechCrunch. “In an industry with extremely tight margins, effective supply chain management is crucial for success. We attempted multiple software implementations, but both failed. This led me to the realization that I wanted to develop software specifically for this industry.”

Jacob’s experience is not unique. Distributors have often faced lengthy, costly, and frustrating implementations of large-scale enterprise software solutions.

A New Approach: AI Agents Layered on Existing Systems

After witnessing two decades of limited software adoption within the industry, Jacob believes Burnt’s strategy of integrating AI agents with existing systems, rather than replacing them, presents a substantial opportunity.

“Every company we’ve spoken with views their ERP system as a necessary burden,” stated the CEO. “Traditional software required teams to abandon established processes and adopt new ones. AI, however, allows work to be completed without altering existing workflows.”

How Burnt Streamlines Order Processing

Currently, sales representatives at food distributors receive orders through various channels, including email, phone calls, WhatsApp, voicemails, texts, and even faxes. Each order then requires manual input. This process consumes valuable time that could be dedicated to activities such as acquiring new clients or increasing sales to existing ones.

Burnt’s initial AI agent, Ozai, automates and manages this order-entry process. Jacob asserts that it can automate up to 80% of tasks currently handled by legacy systems.

Early Traction and Growth

Since its launch in January, the startup has processed over $10 million in monthly orders across seafood, specialty goods, and packaged food distributors. A major U.K.-based food conglomerate, generating billions in revenue, is currently implementing Burnt’s system.

The company is already achieving six-figure revenue and experiencing “steady” month-over-month growth, although Jacob declined to disclose specific figures.

Building Trust Through Industry Expertise

While developing AI for food supply chains may not seem glamorous, Jacob emphasizes that this is intentional. He argues that past failed tech implementations have made operators wary of outsiders lacking industry experience.

The background of Jacob and his co-founders has been instrumental in establishing trust within a sector where strong relationships are paramount. Rhea Karimpanal, Chief Product Officer and Jacob’s wife, comes from a family with a history in the restaurant business. Chandru Shanmugasundaram, CTO, has experience building software systems for restaurant applications.

Leveraging Previous Experience

Jacob previously worked at Rekki, a B2B marketplace for restaurants and suppliers, where he observed the fragility of existing supply chain technology and the potential for AI to transform it.

Securing Investment

Despite the current interest in AI, securing investment proved challenging. Jacob explained that convincing venture capitalists to invest in a solution for food distributors required a unique approach. Many were initially unconvinced of the market’s potential despite its size.

Penny Jar Capital's Vision

Penny Jar Capital, backed by Steph Curry, recognized the opportunity. The firm’s investment strategy focuses on supporting founders who are innovating in “overlooked” industries with low rates of technology adoption.

“Two decades of unsuccessful software adoption represents a significant opportunity. Investors who recognize this understand its potential for substantial growth if executed effectively,” Jacob concluded.