Boon raises $20.5M to build agentic AI tools for fleets

Logistics is the name of the game during the holiday season: Companies that can seal the deal and get people and things to the places they need to be, on time, rake it in this time of year. 

But behind that demand lies a huge amount of inefficiency and fragmentation. Are logistics businesses ready for AI to help run their services better? A startup called Boon thinks the answer is yes. It has now raised $20.5 million to prove that out, by way of a platform to help them make better use of data from disparate applications, to improve their operations, planning and overall efficiency. 

“Think of Boon as the second employee in the back office,” said Deepti Yenireddy, the founder and CEO, in an interview. “Our AI agent is like another teammate doing critical work so that people can focus on tasks that actually make them more money.”

The funding is coming from Marathon and Repoint, which have backed it in a $15.5 million Series A and a previously undisclosed $5 million seed. 

Taking just goods carriers alone, there are more than 60 million fleet vehicles globally, according to research from Berg Insight, with the vast majority of the companies operating them classified as SMEs. 

Meanwhile the tools they use are equally scattered: accounting, routing, sales, HR — on average between 15 and 20 different apps and pieces of software are used to run a logistics or fleet company, all existing in silos surrounded by reams of physical paperwork.

As Urvashi Barooah, the partner who led the investment for Redpoint Ventures, described it, “first-generation point solution software tools have added a heavy administrative load” to fleet management companies.

Boon thinks it can speed up efficiency in those systems tenfold with its AI tooling. 

Focusing initially on revenue and operations workflows, for example to help build more efficient routing and finding the best places to fuel up, the plan is to use the funding to expand the kinds of workflows it can cover — for example to help improve how containers are loaded, or how to optimize staffing. 

Yenireddy said she came up with the idea for Boon while at her previous job as senior director of product at the fleet operations giant Samsara. “We know this customer deeply, from my past experience leading product, telematics, and international product that Samsara,” she said. “These customers want a single place and a single platform. They’re doing so many things, and they want simplicity in the technology they adopt. That’s the reason and motivation behind building this.”

She also has a track record as a founder, having previously built an AI company in the HR sector that she sold to Phenom People, an AI recruitment platform. So rather than consider how she might build this within Samsara, she struck out to build it as Boon. “Once a founder, always a founder,” Yenireddy said. She has pulled together alums Apple, DoorDash, Google, Samsara, and Shell to bolster her vision. (And it’s actively hiring now for more go-to-market people and engineers.)

The funding is coming on the back of some strong interest. Boon has paying customers that represent 35,000 drivers and 10,000 vehicles on its platform, working out to the company reaching an annual revenue run rate of $1 million after nine months of business. 

This is just scratching the surface, and going deeper could come with some bumps. The actual work of building a platform that can work intelligently across different data silos to boost enterprise intelligence has been something of a holy grail in the B2B world, at the heart of what other big (and heavily funded) startups such as H are trying to do also in the arena of “agentic AI.” At the same time, if applications of that actually succeed, they might usher in major efficiency, but also potentially raise questions about what humans will do next as a result of that extra time.