Augment, an AI-powered logistics startup led by Shopify Deliverr’s former co-founder Satish Natarajan, has closed a massive $85 million Series A round—one of the largest early-stage fundraises for a logistics tech firm in 2025. The funding, co-led by Andreessen Horowitz (a16z) and Kleiner Perkins, will fuel the expansion of Augment’s AI-driven supply chain optimization platform, which aims to solve persistent inefficiencies in global logistics, from shipping delays to inventory waste.

The round’s size is notable not just for its scale, but for the trust investors are placing in Natarajan’s track record. During his tenure at Deliverr (which Shopify acquired for $2.1 billion in 2022), Natarajan helped build a fulfillment network that streamlined last-mile delivery for small and medium-sized businesses (SMBs). Augment leverages that expertise, but with a focus on a broader pain point: the “middle mile” of logistics—where goods move between warehouses, distribution centers, and regional hubs—a segment that accounts for 40% of global supply chain costs, per McKinsey data, yet remains largely unoptimized by technology.

How Augment’s AI Transforms Logistics

Augment’s flagship platform uses a combination of predictive analytics, real-time data integration, and machine learning to simplify complex logistics decisions. Unlike traditional logistics tools that rely on static spreadsheets or manual planning, Augment’s AI pulls data from 100+ sources—including shipping carriers (UPS, DHL), inventory management systems (SAP, Shopify), and weather/geopolitical databases—to forecast delays, recommend optimal routes, and auto-adjust inventory levels. For example:

• A consumer goods brand using Augment reduced shipping costs by 22% after the platform identified redundant warehouse locations and rerouted shipments to avoid congested ports.
• A furniture retailer cut delivery lead times by 35% by leveraging Augment’s predictive model, which anticipated labor shortages at a key distribution center and suggested a backup facility weeks in advance.

Critical to the platform’s appeal is its accessibility: designed for logistics teams without advanced technical skills, it offers a no-code dashboard that lets users adjust parameters (e.g., delivery speed vs. cost) and view AI-generated recommendations in plain language. “Logistics professionals spend hours firefighting delays instead of strategic planning,” Natarajan, Augment’s CEO, said in a statement. “Our AI doesn’t replace their expertise—it amplifies it, turning chaos into predictability. That’s the difference between surviving and thriving in today’s supply chains.”

Why Investors Are Betting Big on Augment

The $85 million raise reflects growing investor enthusiasm for AI-driven logistics solutions, a market projected to reach $135 billion by 2030 (per Grand View Research). Global supply chains remain fragile post-pandemic, with businesses still grappling with port congestion, labor shortages, and volatile fuel prices—all problems Augment’s technology directly addresses.

“Satish built Deliverr by solving a clear pain point for SMBs, and he’s doing it again with Augment—this time for the entire logistics ecosystem,” said Connie Chan, a general partner at a16z, who co-led the round. “The middle mile has been overlooked for too long, and Augment’s AI is the first tool that makes it truly manageable. This isn’t just a logistics play—it’s a infrastructure play for the global economy.”

Kleiner Perkins partner Ilya Fushman echoed that sentiment, noting Augment’s potential to scale beyond B2C brands to industries like manufacturing and healthcare. “Healthcare providers, for example, can’t afford delays in medical supply deliveries—and Augment’s AI can mean the difference between on-time care and disruptions,” Fushman said. “The platform’s flexibility across sectors is what makes this such an exciting investment.”

What’s Next for Augment

With the new funding, Augment plans to triple its 45-person team by the end of 2026, focusing on hiring AI engineers, logistics experts, and customer success managers. The company also aims to expand into three new regions—Europe, Southeast Asia, and Latin America—by 2027, where fragmented logistics networks create even more opportunities for optimization.

Additionally, Augment will launch two new features in early 2026: a “carbon footprint tracker” that calculates the emissions of each shipment and suggests eco-friendly routes, and a “carrier collaboration tool” that lets brands and shipping partners share real-time data to resolve bottlenecks faster. Both features align with a broader industry shift toward sustainable, transparent supply chains—top priorities for many of Augment’s current clients, including Unilever and Wayfair.

For Natarajan, the Series A is just the start. “Deliverr proved that logistics tech could level the playing field for SMBs,” he said. “Augment will do the same for the entire supply chain—making it smarter, faster, and more resilient for everyone. This funding isn’t just for us—it’s for every business that’s ever struggled to get a product where it needs to be.”

As global supply chains grow more complex, Augment’s $85 million raise signals a clear trend: investors see AI as the key to fixing logistics—and they’re willing to bet big on founders who have a proven track record of turning that vision into reality.