Indianapolis-based Paxafe has raised $9m to transform AI-powered, autonomous cold-chain logistics following a year in which the company saw recurring revenue grow 330%.

Global cold chain, one of the fastest growing sectors in supply chain, was valued at over $281bn in 2022 and is expected to reach $327bn by 2029. The critical need for constant refrigeration from source to final destination has created significant cost and time-related problems for cold chain logistics. Paxafe is transforming workflow automation and the management of temperature-sensitive products in transit and storage across industries such as pharmaceuticals and produce.

“We are on a mission to quantify strategic and operational cold-chain risk through AI-powered automation,” said Ilya Preston, co-founder and CEO of Paxafe “For the past decade, we’ve witnessed the industry adopt IoT sensors as a means for addressing mission-critical issues such as on-time, in-full [OTIF] product deliveries. Yet, real-time sensor data are limited without contextual analysis and prescriptive, recommended action.”

Paxafe transforms quality, transportation and logistics operations for high-profile pharmaceutical and produce manufacturers, and cold-chain service providers such as Carrier, Transposafe and Hive-Zox. The company’s SaaS platform, Contxt (www.paxafe.com/solutions/contxt), quantifies strategic and operational risk, proactively predicts adverse events and recommends requisite actions to ensure perishable goods are delivered on time and in expected conditions. Contxt helps end-users make complex, data-driven decisions in minutes, without requiring a significant financial investment in consultative support.

The funding round was led by Framework Venture Partners, with new participation from M12 (Microsoft’s Venture Fund), Rosecliff Ventures, Elevate Ventures, AngelList Quant Fund, Gaingels and Mana Ventures, as well as from existing participants Ubiquity Ventures and Venture53. This round brings the total funding raised to date to $14m; the money will be used to meet increasing customer demand, fuel product innovation, and expand global operations and partner ecosystems.

“On behalf of the entire Paxafe team, we’d like to thank our investors for their continued support as we expand our footprint, enhance our platform and build partnerships that reshape the industry,” said Preston.

Peter Misek, managing partner at Framework Venture Partners, added: “In an industry saturated with companies claiming GPT capabilities, Paxafe is the one true AI-powered risk provider in cold-chain logistics. Knowing exact arrival times and being able to act before disaster strikes are key for supply chain resiliency. Paxafe enables real-time visibility, a must-have for any enterprise moving goods that require climate and oscillation control.”

And Peter Berg, managing partner at M12, said: “As an investor at M12, I’m delighted to be part of Paxafe’s series A funding round. The team at Paxafe has shown remarkable innovation in visibility and risk management, and their platform is poised to transform the industry via applied uses of AI that deliver measurable RoI for customers. This investment is not just about financial opportunity, but about being a partner to Paxafe on a journey that could reshape the way we understand and manage supply chain risks.”

Paxafe (www.paxafe.com) delivers autonomous AI-enabled decision support for transportation and logistics companies, helping them extract value and resiliency from their existing visibility options. Its SaaS platform Context harnesses the power of Athena LLM to translate network information into proactive recommendations that reduce product loss and optimise operations.