Conduit Raises $6M to Build an AI Operating System for Warehouse Yards

SAN FRANCISCO, CA – March 24, 2026 – In a significant move to overhaul one of the most stubbornly manual links in the global supply chain, logistics technology firm Conduit announced today it has secured a $6 million Seed funding round. The investment, led by Innovation Endeavors with participation from powerhouse accelerator Y Combinator, is earmarked to scale Conduit's AI-powered operating system for warehouse dock and yard management.

The funding arrives as the logistics industry grapples with a critical paradox: while AI promises unprecedented efficiency, its adoption is often crippled by a lack of clean, structured data. Most warehouse shipping and receiving operations, the central nervous system for the flow of goods, still run on a disjointed mix of emails, phone calls, and spreadsheets. This operational chaos leaves valuable data fragmented and unusable, preventing the very automation that companies desperately need.

Conduit aims to solve this foundational problem. "We are building Conduit so any warehouse can run shipping and receiving on a single system," said Conrad Lilleness, Founder and CEO of Conduit. "You can't put agents on top of chaos. Before AI can direct warehouse operations, you need a system that knows what's actually happening."

The Data-Starved Dock

For decades, the warehouse yard has been a black box. While billions have been invested in optimizing freight routes and in-warehouse robotics, the space connecting the gate to the dock door has remained a bottleneck. This critical handoff point determines how efficiently trucks are loaded and unloaded, directly impacting everything from driver dwell times to inventory accuracy and overall throughput.

The reliance on manual coordination creates a cascade of inefficiencies. Staff spend hours each day reconciling information from different sources, manually scheduling appointments, and physically tracking down trailers in the yard. This not only inflates labor costs but also introduces a high risk of error and creates significant delays. According to Conduit, its customers typically save two hours per team member per day by automating these tasks.

This environment of "data poverty" has been the single greatest obstacle to leveraging modern AI in logistics. Advanced machine learning models require a steady stream of structured, real-time data to learn, predict, and optimize. When that data is trapped in email inboxes and Excel files, AI initiatives are dead on arrival. Conduit’s strategy is to first build the data foundation that makes intelligent automation possible.

From Manual Mayhem to Automated Mastery

Conduit's platform is a modular suite of tools designed to replace disconnected manual processes with a unified, connected workflow. The system includes modules for dock scheduling, driver self-check-in, digital documentation, and yard management. Customers can start with a single module to solve an immediate pain point and expand over time. Together, these components create a comprehensive system of record for every shipment, driver interaction, and trailer movement.

This structured data becomes the fuel for the company's AI engine. With a centralized data layer, Conduit can enable AI-directed workflows that were previously impossible. These include predictive scheduling that anticipates delays, real-time alerts for exceptions like late arrivals or incorrect shipments, and intelligent driver workflows that guide drivers seamlessly from gate to dock.

The real-world impact of this shift is already being validated by Conduit's roster of over 100 customers, which includes regional third-party logistics providers (3PLs) and major national shippers. The company boasts an impressive 172% net dollar retention rate, a key metric indicating that existing customers are not only staying but significantly expanding their use of the platform across more facilities and modules.

Cody Moreland, Sr. Director of Fulfillment at logistics giant Flexport, attested to the platform's value. "By integrating Conduit into the Flexport platform, we've replaced manual email chains and siloed tools with real-time visibility, significantly reducing dwell times and operational costs," he stated. "It has transformed our docks from a reactive process into a scalable, high-visibility advantage for our merchants."

Similarly, beverage company BODYARMOR saw immediate results. "Conduit stands out as the only solution where adoption was almost immediate and operational improvements were visible within the first week," said Anthony Joyce, Director of Logistics. "We saw a 24% reduction in dwell time and a 21% reduction in dock time since rollout."

The New Supply Chain Battleground

The $6 million investment underscores a growing recognition among investors that the warehouse yard is the next critical battleground for supply chain optimization. Innovation Endeavors, whose portfolio includes other transformative logistics companies like Gatik and Afresh, sees Conduit as a key player in bringing intelligent software to the physical economy.

"AI is transforming logistics by automating workflows and bringing together the underlying data infrastructure. Most warehouses aren't there yet. Conduit is changing that," said Harpinder Singh, Managing Partner at Innovation Endeavors. He noted that the platform's rapid adoption and expansion within customer networks signaled a powerful combination of operational value and strong team execution.

While established Warehouse Management System (WMS) providers like Manhattan Associates and Blue Yonder offer yard management modules, Conduit differentiates itself with its AI-native approach and ease of implementation. The company claims customers can go live in under two weeks, a stark contrast to the lengthy and complex deployments often associated with legacy enterprise software. This agility, combined with a modern tech stack, positions it to outmaneuver incumbents.

With the new capital, Conduit plans to accelerate its product roadmap, focusing on more advanced AI capabilities like cross-facility benchmarking and more sophisticated predictive analytics. The company will also expand its engineering and customer success teams to meet surging demand from shippers and 3PLs eager to digitize their operations and finally unlock the promise of an AI-driven supply chain.