Streamlining the logistics of freight carriers and shippers, AI-powered automation startup Cartage announced its $3.3 million investment round on October 10.
The funding round was led by Y Combinator, Garage Capital, Wayfinder Ventures, Northside Ventures, Pioneer Fund, and Ritual Capital.
Angel investors also participated in the funding round for Cartage, including Paul Graham, founder of Y Combinator; Nate Smith, founder of Lever; Kulveer Taggar, co-founder of Zeus; and Ian Logan and Caleb Gawne, former associates at Rose Rocket TMS or Transportation Management System.
Y Combinator, a venture capital firm, launched around 5,000 startups till date – Cartage is part of its 2024 class.
Headquartered in San Francisco, Cartage’s AI-based software automates freight operations for shippers and carriers and aims for speedy and cost-effective deliveries. The automation startup’s technology is changing the landscape of the freight industry by eliminating the need for manually coordinated shipments.
“In addition to cheaper shipping costs, we embed technology into the shipping experience, providing all stakeholders visibility and transparency on shipments,” their website said.
Founded in 2023, Cartage was created by a team with firsthand experience in the freight industry.
Cofounder and COO Harman Sahota grew up in the trucking business and started his freight brokerage career at just 14. At 16, Sahota founded his first logistics company which resulted in a 500,000 contract with Sherwin Williams. His next venture was Westcore Logistics, Canada’s fastest growing logistics company in 2023 and scaled it from 0 to over $50 million in revenue within four years. The same year, Cartage acquired Westcore Logistics.
Cofounders, CEO Abdul Basharat and CTO Josh Lampen, met at freight software startup Rose Rocket as early product developers where they were product lead and founding engineer, respectively.
Prior to tech, Adbul trained as a military pilot and worked in management consulting. Lampen played water polo for Canada’s National Team while also working as a management consultant.
Claiming to reduce freight costs for shippers by up to 30%, Sahota told Freight Waves: “I think traditional brokers often hammer down the carrier [on rates] as much as they can. That’s not our goal here. It is to get good carriers working on our lanes and giving them a fair rate.”
“The industry does not need to change for technology; we think technology needs to change for the industry,” added Basharat.
Cartage’s approach seems to be resonating with customers, seeing its promise with the latest capital.