BackOps raises $42M Series B to automate supply chain claims resolution with AI agents

BackOps, founded in 2024, automates the supply chain claims process for companies that manufacture or move physical goods. Sean McCarthy, co-founder and CEO, announced a $42M Series B alongside the conversation.

What the product does

When a consumer receives a damaged item, the retailer or shipper files a claim with the carrier responsible. Historically, that work falls to a human back-office team — and if the first filing is denied, many teams simply move on. BackOps files those claims automatically, pursues appeals up to three times, and handles the documentation gathering (photos of damage, temperature logs for cold chain shipments) that determines whether a claim is approved. McCarthy says BackOps achieves a 13% higher approval rate than human filers, which translates directly to cash recovered that would otherwise be written off.

“BackOps is an AI native resolution layer for supply chain. So we target companies that make or move physical goods... On just the approvals, we're talking about claims alone, we see at least a 13% higher approval rating in the system filing versus a human. Right? So that is actually money back in their pocket as well that they would have missed.”

Where the market is

The back-office supply chain stack is fragmented, ranging from mainframes and SAP to Excel spreadsheets, which virtually every customer uses before switching to BackOps. Early on, the company had to pick specific integrations — warehousing systems first, a defined set of top-10 connectors — because browser-based automation wasn't reliable enough and many customers wouldn't grant API access. McCarthy says that constraint has largely dissolved, and BackOps can now onboard customers regardless of their underlying systems.

The sales pitch

The primary value driver is OpEx reduction: companies that would otherwise hire headcount to staff a growing claims team don't need to. The 13% approval-rate lift adds a second line of recoverable revenue. McCarthy also points to customer experience as a factor, though the financial case is the lead.

Use of proceeds

BackOps is currently live across retail, manufacturing, and grocery. The Series B is intended to fund expansion into pharma, where the cold-chain infrastructure built for grocery transfers directly, and to hire domain experts who can configure the platform for sector-specific claim types. McCarthy describes the growth motion as simultaneously wide (new verticals) and deep (existing customers adding new automated workflows as use cases compound).