As the holiday season approaches, logistics companies are gearing up to meet the surge in demand, but behind the scenes, inefficiencies and fragmentation plague the industry. A startup called Boon believes artificial intelligence (AI) can be the solution, and has just raised $20.5 million to prove it.

Boon's platform aims to help logistics companies make better use of data from disparate applications, improving their operations, planning, and overall efficiency. According to founder and CEO Deepti Yenireddy, "Think of Boon as the second employee in the back office. 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 comes from Marathon and Repoint, with a $15.5 million Series A and a previously undisclosed $5 million seed round. This investment will be used to expand the kinds of workflows Boon's platform can cover, including revenue and operations workflows, routing, and staffing optimization.

The logistics industry is ripe for disruption, with over 60 million fleet vehicles globally, mostly operated by small and medium-sized enterprises (SMEs). These companies typically use between 15 and 20 different apps and software tools, which often exist in silos, surrounded by physical paperwork. Boon's AI tooling aims to speed up efficiency in these systems tenfold.

Yenireddy, who previously worked as senior director of product at fleet operations giant Samsara, came up with the idea for Boon while observing the inefficiencies in the industry. She has a track record as a founder, having previously built an AI company in the HR sector that she sold to Phenom People. Boon has already gained traction, with paying customers representing 35,000 drivers and 10,000 vehicles on its platform, achieving an annual revenue run rate of $1 million after just nine months of business.

The success of Boon's platform could have far-reaching implications for the logistics industry, potentially ushering in major efficiency gains. However, it also raises questions about the impact on human jobs, as AI takes over tasks previously performed by humans. As the industry moves towards greater automation, it will be crucial to consider the consequences of these advancements.

Boon's funding and vision come at a time when the concept of "agentic AI" is gaining attention in the B2B world. The startup's success could pave the way for other companies to adopt similar AI-powered solutions, driving innovation and transformation in the logistics industry.