Canals Raises $35M to Eliminate Friction from the Industrial Supply Chain
Miami, Florida, May 28, 2026 (GLOBE NEWSWIRE) -- Canals, the leader in AI for wholesale distribution, today announced the company raised $35M in funding. The financing was led by Base10 Partners, a leading venture capital firm investing in automation for the real economy.
The investment will accelerate product development to eliminate friction from the thousands of daily interactions between distributors and their customers and suppliers, unlocking a new era of growth for the $8.2T wholesale distribution industry. With customers seeing results like doubling quote conversion rates and 96% touchless invoice processing, demand to automate additional operations with AI is surging.
“From conversations with many Canals customers as well as our own contacts in wholesale distribution, we kept hearing the same thing over and over again: Canals is customer-obsessed and delivers outstanding ROI. Its technology and team are clearly the best in the market,” said Jason Kong, General Partner at Base10 Partners. “They’re outperforming, by orders of magnitude, others marketing similar solutions, so it was an easy decision to partner with Michael and this incredible team. We could not be more grateful for their trust in us.”
“Our customers operate in the real world, with messy inputs, imperfect data, and constant change, which made automation difficult to impossible before AI,” said Michael Delgado, CEO and Co-Founder of Canals. “We’ve built the most accurate AI for wholesale distribution to finally free teams from manual data entry and enable stronger relationships across the supply chain.”
Canals is a proven partner to over 100 distributors, including DSG, The Kendall Group, Locke Supply, and some of the largest distributors in the world. It has already processed over 8 million sales orders and $5 billion in payables, with sales growth surpassing best-in-class tech benchmarks—all without venture capital.
“As DSG has expanded to serve customers across electrical, HVAC, plumbing, and waterworks, technology has always been a key enabler of our growth. Canals is now our gold standard for how technology can continue driving the business forward,” said Paul Kennedy, CEO of DSG and current Chair of the Board of Directors of the National Association of Electrical Distributors. “It not only increases productivity so we can grow more efficiently, but also improves the customer experience and employee-owner experience. There’s a lot of hype when it comes to AI, but Canals is the real deal, the best-in-class product delivering real results that matter.”
With customer partnership at the heart of product development, Canals has expanded from an AI sales order entry tool to an end-to-end AI workflow suite empowering teams across Sales, Customer Service, Accounting, Purchasing, and Receiving. The new funding enables them to more quickly bring to market first-of-their-kind solutions for frictionless transactions across the supply chain, cementing wholesale distributors as an indispensable link in the flow of goods and payments.
About Canals
Canals is the Operating AI for customer-focused distributors, automating workflows across Sales, Customer Service, Accounting, Purchasing, and Receiving to drive speed, accuracy, and consistency. By reducing reliance on manual processes and institutional knowledge, our suite of AI tools maximizes operational efficiency and visibility at any scale. Respond to customers faster and free up team members to be more proactive, taking service to the next level and building deeper relationships. Over 100 distributors run on Canals to win, keep, and grow more customers. Details at www.canals.ai.
About Base10 Partners
Founded by Adeyemi Ajao and TJ Nahigian, Base10 is a San Francisco-based venture capital fund investing in founders who believe purpose is key to profits and in companies that are automating sectors of the Real Economy. Through its program the Advancement Initiative, Base10 donates a portion of profits to underfunded colleges and universities to support financial aid and other key initiatives. Portfolio companies include Notion, Figma, Nubank, Stripe, Popmenu, Aurora Solar, and Chili Piper. Connect via base10.vc.
Daysi Robles Lopez PAN for Canals Canals@pancomm.com
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