Why This Matters to Distributors: Investment in distributor-focused AI platforms continues accelerating as wholesalers seek to automate order processing, invoicing and customer service operations while improving productivity and response times across increasingly complex supply chains.
Canals, a developer of artificial intelligence software for wholesale distributors, said Thursday it raised $35 million in funding led by venture capital firm Base10 Partners.
The Miami-based company said the funding will be used to expand product development and accelerate automation tools for distributors, suppliers and customers across sales, customer service, accounting, purchasing, and receiving operations.
Canals said distributors using its platform have reported results including doubled quote conversion rates and as much as 96% touchless invoice processing. The company said it has processed more than 8 million sales orders and $5 billion in payables across its customer base.
CEO and co-founder Michael Delgado said the company’s software is designed to automate operational workflows that traditionally relied on manual data entry and employee experience.
“Our customers operate in the real world, with messy inputs, imperfect data, and constant change, which made automation difficult to impossible before AI,” Delgado said in a statement.
Canals said it serves more than 100 distributors, including DSG, The Kendall Group and Locke Supply.
Paul Kennedy, CEO of DSG and current chair of the board of directors of the National Association of Electrical Distributors, said the platform has helped improve productivity and customer experience as DSG expanded across electrical, HVAC, plumbing, and waterworks markets.
“There’s a lot of hype when it comes to AI, but Canals is the real deal,” Kennedy said in a statement.
The funding reflects growing investment in AI applications tailored specifically for wholesale distribution, where distributors are increasingly adopting automation tools to reduce manual work, improve order accuracy and respond faster to customers.
Canals said it has expanded from an AI sales order entry platform into a broader workflow automation system supporting functions across sales, accounting, purchasing, and receiving.
Base10 Partners invests in companies focused on automation technologies for industries including logistics, commerce, and construction. Its portfolio includes Stripe, Figma and Notion.
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