BackOps raises $42M Series B on supply chain automation gains

BackOps announced Wednesday it has raised $42 million in Series B funding led by Insight Partners, with participation from existing investors Theory Ventures, Construct Capital, Gradient Ventures and 10VC. The round comes six months after the company closed a $26 million Series A and follows customer deployments that cut one retailer’s billing cycle time from approximately 28 hours to 14 minutes.

BackOps operates an AI resolution layer for companies that make or move physical goods. The company will use the funding to expand its resolution layer to support additional processes and grow its product, engineering and go-to-market teams to meet growing customer demand.

The company’s carrier claims system has processed more than 500,000 claims since going live at a national parcel platform in December 2025. The system resolved 91% of claims with no human involvement as monthly volume grew 150-fold without additional hiring. The automated resolution rate climbed from 87% at launch to 99% currently.

In a separate deployment at a retailer operating 13 sites, BackOps reduced the average billing cycle from approximately 28 hours to 14 minutes. The change created capacity that eliminated the need to add five planned billing specialists and a supervisor, representing approximately $660,000 in projected fully loaded annual cost. The billing process previously required an estimated 11,000 staff hours annually.

BackOps plans to expand its supported resolution processes across operations, finance and customer service. Large enterprises across the grocery, retail, logistics and distribution sectors have adopted BackOps over the past year to run end-to-end processes spanning carrier claims, chargeback disputes, complex billing and forecasting.