Canals Raises $35M Series A to Expand AI Workflow Tools for Distributors

Canals — a Miami, FL-based AI workflow solutions provider for distributors — announced May 28 that it raised $35 million in Series A funding led by Base10 Partners.

The company said the funding will accelerate product development for its AI-powered workflow suite, which is designed to automate manual processes across sales, customer service, accounting, purchasing and receiving. Canals said its tools are used by more than 100 distributors, including DSG, The Kendall Group and Locke Supply.

Canals Co-Founder and CTO Erez Arnon was on the MDM Amplify Podcast in early April. Check out the episode here.

Canals said its platform has processed more than 8 million sales orders and $5 billion in payables. The company’s website positions its software as “Operating AI” for distributors, manufacturers and contractors, with workflow tools for order entry, inquiry handling, accounts payable, statement reconciliation, PO tracking and receipt tracking.

“Our customers operate in the real world, with messy inputs, imperfect data, and constant change, which made automation difficult to impossible before AI,” Canals CEO and Co-Founder Michael Delgado said in the announcement. “We’ve built the most accurate AI for wholesale distribution to finally free teams from manual data entry and enable stronger relationships across the supply chain.”

Base10 Partners General Partner Jason Kong said customer feedback influenced the firm’s investment.

“From conversations with many Canals customers as well as our own contacts in wholesale distribution, we kept hearing the same thing over and over again: Canals is customer-obsessed and delivers outstanding ROI. Its technology and team are clearly the best in the market,” said Jason Kong, General Partner at Base10 Partners. “They’re outperforming, by orders of magnitude, others marketing similar solutions, so it was an easy decision to partner with Michael and this incredible team. We could not be more grateful for their trust in us.”

Canals said it has expanded from an AI sales order entry tool to an end-to-end workflow suite for distributor operations. The company said the new funding will support additional solutions for automating customer and supplier transactions across the industrial supply chain.

Canals states that it has partnered with over 100 distributors to-date that include DSG Supply, The Kendall Group and Locke Supply Co.

“As DSG has expanded to serve customers across electrical, HVAC, plumbing and waterworks, technology has always been a key enabler of our growth. Canals is now our gold standard for how technology can continue driving the business forward,” DSG Chief Executive Paul Kennedy said in Canals’ funding announcement. “It not only increases productivity so we can grow more efficiently, but also improves the customer experience and employee-owner experience. There’s a lot of hype when it comes to AI, but Canals is the real deal, the best-in-class product delivering real results that matter.”