# BackOps raises $42M Series B for supply chain AI > The Insight Partners-led round comes six months after BackOps raised $26 million in Series A funding. The company says proprietary data from supply chain work is its AI moat. - Publication: Go Big News - By Nifal Adam, Go Big News Staff (Staff News) - Category: AI - Published: 2026-09-23T08:45:18.786+00:00 - Canonical: https://www.gobignews.com/ai/backops-raises-42m-series-b-for-supply-chain-ai --- [BackOps](https://backops.ai) has raised a $42 million Series B led by Insight Partners, CEO Sean McCarthy announced in a post on X. The round comes six months after the company’s $26 million Series A. Existing investors Theory Ventures, Construct Capital, Gradient Ventures and 10VC also participated. The Series B brings BackOps’ total funding to date to $68 million. McCarthy said proprietary operational data generated by doing the work can become an AI moat as models get cheaper and more widely available. BackOps provides an AI resolution layer for manufacturing and logistics companies, automating supply chain work including carrier claims, billing disputes and order exceptions. The company said a national parcel platform customer processed more than 500,000 claims through BackOps since its December 2025 launch. Its automated resolution rate rose to 99% from 87%, according to the announcement. A retail customer cut its billing cycle from about 28 hours to 14 minutes using BackOps, the company said. The change eliminated the need for five billing specialists and saved an estimated $660,000 annually. BackOps’ flagship product, Relay, is an agentic automation engine that monitors email, Slack and other communications to detect and resolve issues. It can file carrier claims and start reshipments using a human-in-the-loop approach. McCarthy founded BackOps in 2024 with co-founder and CTO Henry Ou. Before its Series A, the company raised a $6 million round in June 2025 led by Construct Capital. --- ## Companies in this story - Backops: https://www.gobignews.com/company/backopsai --- ## X profiles in this story - @backopsai: https://www.gobignews.com/profile/backopsai - @insightpartners: https://www.gobignews.com/profile/insightpartners - @seanmcccarthy: https://www.gobignews.com/profile/seanmcccarthy