Armada Supply Chain Solutions has made its first strategic technology investment, backing Kargo, a startup that uses computer vision and artificial intelligence to automate freight and inventory tracking. The investment follows Armada’s national deployment of Kargo’s system across 240 loading docks in its warehouse network.
The $18.4 million funding round was led by Matter Venture Partners and included existing investors Sozo Ventures and Founders Fund. New strategic investors, including cold storage giant Lineage, also joined the round. Kargo will use the capital to expand its product capabilities and grow its customer base.
Kargo’s system replaces manual data entry with AI-powered towers and forklift-mounted cameras that automatically scan and analyze freight in real time. Technology identifies discrepancies such as overages, shortages, and damage, enabling faster, more accurate inventory management.
“We were live in under a month,” said Rick Rover, president of Armada’s warehouse division. “The system immediately improved inventory accuracy and traceability for our restaurant customers.”
Since its founding in 2019, Kargo has deployed more than 500 towers and AI-enabled forklifts across facilities for companies including Tyson, Tillamook, Utz, and DB Schenker. The system processes approximately 20,000 pallets and $200 million in inventory daily.
Armada’s investment underscores a growing trend in logistics: operational AI adoption paired with financial commitment. By backing Kargo, Armada is positioning itself not just as a user of AI, but as a stakeholder in the next generation of supply chain infrastructure—focused on improving speed, transparency, and resilience across foodservice logistics.
Don’t miss any content from Distribution Strategy Group. Join our list.
