Co-founder and CEO Harish Abbott is well aware of the logistics industry as he built and sold e-commerce shipping startup Deliverr to Shopify for $2.1 billion in 2022.
Abbott felt that AI could be used to automate many manual logistics tasks. That’s why he launched an Augment last year. It offers an AI assistant called “Augie” that can take over the boring and repetitive tasks that cargo sailors, carriers and brokers do.
On Thursday, Augment announced its participation from RedPoint-led $85 million Series A, including 8VC, Autotech Ventures and others. The large round comes in at a $25 million seed round just five months after the startup was launched from Stealth.
“Freight and logistics are a very large industry that employs a lot of people who are busy chasing emails, documents, calls and text messages all day,” Abbott told TechCrunch. “Aussie can take care of everything like her assistant, so she can focus on relationships and negotiations.”
Today, Augie can perform seven key tasks in the logistics process, from collecting and reviewing pricing bids from trucking companies, to tracking packages along the way, to building loads, a way to combine multiple shipments to maximize truck space, to collecting invoices to ensure timely billing.
All of these processes typically include numerous phone calls, emails, or texts exchanged between the various participants in the logistics process. Augie can help humans streamline these communications by operating on multiple channels, including voice, email, Slack, SMS, and Telegram.
Although Augment has not disclosed revenue, Abbott says the company has more than twice the number of customers it serves since it raised its seed round.
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Many customers are still trying out the product, but fully onboarded clients like Armstrong Transport Group have already achieved significant productivity gains along with increased growth, including a 40% reduction in invoice delays.
Jacob Effron, managing director at Redpoint, said he invested in Augment after talking to many Augment clients. “Customer feedback is honestly amazing. People really love the product. I think they use it in a very ubiquitous way.”
The massive funding round will hire 50 engineers and work on adding more features. “It’s a large, fragmented market. It’s complicated and messy. The system is a bit old-fashioned and silent,” Abbott said. “There are so many software systems that these companies use, so there are a lot of engineers.”
The company currently serves the trucking industry, but its long-term vision is to expand into other aspects of international shipping and logistics.
Abbott is not just pursuing AI for logistics. Other AI assistants for freight management include Vooma and Fleetworks. Meanwhile, the shipments of FedEx and UPS indicate that they are investing in their own AI technology.
But all competition doesn’t phase Abbott out. “We have an incredible recruitment,” he said. “Aussie is doing something really cool. Aussie is really thinking ahead, reasoning like a human, and acting on that, so everyone saves a lot of time.”
