Insight Leads $42M Series B for Supply Chain AI BackOps
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BackOps has raised $42 million in Series B funding led by Insight Partners, six months after closing a $26 million Series A. Existing investors Theory Ventures, Construct Capital, Gradient Ventures, and 10VC participated.
The San Francisco company calls itself an AI resolution layer for businesses that make or move physical goods, automating claims, disputes, and order exceptions.
The work it targets is messy by nature. Supply chain processes vary by product, order, customer, and outside party, and reaching an outcome usually means coordinating across enterprise systems, internal teams, and networks of carriers, suppliers, distributors, and service providers. People currently act as the bridge, gathering context, translating between processes, and following up until the work is done. When that depends on manual effort and knowledge held by a handful of staff, costs rise and recoverable value gets left on the table.
General-purpose AI does not arrive knowing any of this. Teams have to capture each process, connect it across systems and third-party portals, define rules and approvals, test it, then maintain it as interfaces change. BackOps ships prebuilt connections to commonly used carrier systems, resolution patterns learned across implementations, and data drawn from resolving carrier claims.
Sean McCarthy is co-founder and CEO.
Large enterprises in grocery, retail, logistics, and distribution have adopted the product over the past year for carrier claims, chargeback disputes, complex billing, and forecasting.
The claims numbers show the scale. A national parcel platform handed BackOps its claims operation, and since going live in December 2025 the system has processed more than 500,000 claims and resolved 91% of them with no human involvement, while monthly volume grew 150-fold without additional hiring. The automated resolution rate climbed from 87% at launch to 99% today.
A separate deployment at a retailer operating 13 sites cut the average billing cycle from roughly 28 hours to 14 minutes. That process had required an estimated 11,000 staff hours annually, and the change created capacity to grow volume without adding a planned five billing specialists and a supervisor, roughly $660,000 in projected fully loaded annual cost.
Next, BackOps plans to expand its supported resolution processes across operations, finance, and customer service. Every new workflow and completed run records the context, decisions, actions, and outcomes behind the work, building a record customers can use to spot recurring patterns.
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