Artificial intelligence-powered cold chain logistics startup Paxafe Inc. announced today that it has raised $9 million in new funding to meet increasing customer demand, fuel product innovation and expand its global operations.

Founded in 2018, Paxafe offers “autonomous cold chain logistics” that leverages AI to proactively manage and mitigate risks in cold chains. Those are logistics networks that ensure constant refrigeration of temperature-sensitive products, such as pharmaceuticals and food, from their source to their final destination.

Paxafe argues that there is a critical need for constant refrigeration from source to final destination, but however, the need for cold chain logistics creates significant costs and time-related challenges. Paxafe is seeking to transform workflow automation and the management of temperature-sensitive products in transit and storage.

“We are on a mission to quantify strategic and operational cold chain risk through AI-powered automation,” said Ilya Preston, co-founder and chief executive officer 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 product deliveries, yet real-time sensor data is useless without contextual analysis and prescriptive, recommended action.”

Using AI, Paxafe can transform transportation and logistics operations for high-profile pharmaceutical companies, perishables shippers and cold chain service providers like Carrier Global Corp. and Transposafe Systems Ltd.

The company’s software-as-a-service platform, CONTXT, quantifies strategic and operational risk by proactively predicting adverse events and recommending actions to ensure that perishable goods are delivered on time and in expected conditions. The platform assists end-users in making complex, data-driven decisions without requiring a significant financial investment in consultative support.

Framework Venture Partners LLC led the Series A round, with new investors M12 Venture Fund (Microsoft Corp.’s Venture Fund), Rosecliff Venture Management LLC, Elevate Ventures Inc., AngelList Quant Fund Direct Investments LP, Gaingels LLC, Mana Ventures LLC and existing investors Ubiquity Ventures Management LLC and Venture53 Investments LLC also participating.

“In an industry saturated with companies claiming GPT capabilities, Paxafe is the only commercially available AI-powered risk provider in cold chain logistics,” said Peter Misek, managing partner at Framework Venture Partners. “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.”

Image: Paxafe