Canals AI

Canals AI

AI-driven ERP-integrated wholesale distribution operating system

Overview

Canals AI offers an AI-powered operating system for the wholesale distribution industry. It integrates with a company’s ERP and automates end-to-end workflows across Sales, Customer Service, Accounting, Purchasing, and Receiving, turning emails, PDFs, and notes into quotes or orders, performing three-way invoice matching, and handling accounts payable and other routine tasks. By focusing on the wholesale distribution domain and delivering measurable outcomes—such as higher quote conversion and heavy touchless invoice processing—Canals differentiates itself through real customer results and a profitable bootstrapped start that later raised funding. Its goal is to modernize the $8.2 trillion wholesale distribution market by eliminating inconsistent data and manual processes to boost speed, accuracy, and efficiency across the supply chain.

About Canals AI

Simplify's Rating
Why Canals AI is rated
B+
Rated B on Competitive Edge
Rated A on Growth Potential
Rated B on Differentiation

Industries

Data & Analytics

Industrial & Manufacturing

Enterprise Software

AI & Machine Learning

Company Size

51-200

Company Stage

Series A

Total Funding

$35M

Headquarters

Coral Gables, Florida

Founded

2022

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Simplify's Take

What believers are saying

  • Canals now serves over 100 distributors, including DSG, Locke Supply, and Kendall Group.
  • The Kendall Group reported 50% time savings on order entry after adoption.
  • Canals' August 24, 2026 update shows continued product expansion after the May funding round.

What critics are saying

  • Distro and Ordermatic attack Canals’ core order-entry wedge with narrower, faster workflows in 2026.
  • NetSuite, SAP, Aptean, and Coupa already control distributor systems and can bundle automation.
  • If ERP vendors ship native AI assistants by 2027, Canals becomes a replaceable layer.

What makes Canals AI unique

  • Canals integrates AI across sales, AP, purchasing, receiving, and customer service, not point tools.
  • By May 2026, Canals processed 8 million orders and $5 billion payables.
  • Base10 led Canals’ $35 million round on May 28, 2026, validating distribution focus.

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Funding

Total Funding

$35M

Above

Industry Average

Funded Over

1 Rounds

Series A funding typically happens when a startup has a product and some customers, and now needs funding to scale. This money is usually used to grow the team, expand marketing, and improve the product. Venture capital firms are frequently the main investors here.
Series A Funding Comparison
Above Average

Industry standards

$15M
$8.2M
Discord
$15M
Canva
$30M
Kalshi
$35M
Canals AI

Benefits

Remote Work Options

Flexible Work Hours

Unlimited Paid Time Off

Paid Vacation

Health Insurance

Wellness Program

Mental Health Support

Professional Development Budget

Conference Attendance Budget

Stock Options

Company Equity

401(k) Retirement Plan

401(k) Company Match

Hybrid Work Options

Phone/Internet Stipend

Home Office Stipend

Family Planning Benefits

Fertility Treatment Support

Adoption Assistance

Parental Leave

PTO/vacation

Growth & Insights and Company News

Headcount

6 month growth

-8%

1 year growth

-8%

2 year growth

-8%
CityBiz Ltd
May 30th, 2026
Miami-based Canals, which makes use of AI to assist distributors automate workflows throughout gross sales, customer support, and extra, raised a $35M Series A led by Base10 (Chris Metinko/Axios)

Miami-based Canals, which makes use of AI to assist distributors automate workflows throughout gross sales, customer support, and extra, raised a $35M Series A led by Base10 (Chris Metinko/Axios) Updated on May 29, 2026

Benzinga
May 28th, 2026
Canals raises $35M to automate wholesale distribution with AI

Canals, a Miami-based AI company serving the wholesale distribution industry, has raised $35 million in funding led by Base10 Partners. The investment will accelerate product development to automate interactions between distributors, customers and suppliers in the $8.2 trillion wholesale distribution sector. The company serves over 100 distributors and has processed more than 8 million sales orders and $5 billion in payables. Customers report results including doubled quote conversion rates and 96% touchless invoice processing. Founded by Michael Delgado, Canals has expanded from AI sales order entry to an end-to-end workflow suite covering sales, customer service, accounting, purchasing and receiving. The funding will help develop solutions for frictionless transactions across the supply chain.

Associated Press
Apr 1st, 2026
Canals launches end-to-end operating AI for distributors, automating workflows across sales to accounting

Canals, an AI platform for wholesale distribution, has launched an end-to-end Operating AI system automating workflows across sales, customer service, accounting, purchasing and receiving departments. The new suite includes AI PO-to-Receipt Tracking, which automatically reads supplier documents and updates ERPs, delivering up to 80% time savings. AI Accounts Receivable matches payments to invoices with 99% accuracy, whilst AI Inquiry Handling generates suggested responses to customer questions by pulling data from ERPs. Additional features include an Ask Canals chatbot for instant product information and Live Voice, which transcribes spoken orders into structured line items in real time. Founded to automate repetitive tasks in distribution, Canals currently serves over 100 distributors. CEO Michael Delgado said the platform enables faster customer responses whilst reducing manual processes.

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