California-Based BackOps Raises $42M in Series B Funding

The round also saw participation from Theory Ventures, Construct Capital, Gradient Ventures, and 10VC.

The company will use the funding to expand its resolution layer across operations, finance, and customer service, while growing its product, engineering, and go-to-market teams.

What is BackOps?

BackOps provides an AI resolution layer for companies that make or move physical goods. Its platform helps businesses manage complex supply chain processes that involve enterprise systems, internal teams, carriers, suppliers, distributors, customers, and service providers.

Read More:William Layden Co-Founded Rune Raises $40M in Series A Funding

The platform uses prebuilt connections to commonly used carrier systems, resolution patterns learned across implementations, and data from carrier claims to help companies automate operational processes.

BackOps is designed to reduce the manual work involved in gathering information, coordinating decisions, following up, and completing supply chain processes.

How Much Funding Has BackOps Raised?

BackOps has raised $42 million in its latest Series B funding round.

The round was led by Insight Partners, with participation from Theory Ventures, Construct Capital, Gradient Ventures, and 10VC.

The source does not provide details of the company’s previous funding rounds or total funding raised before this round.

Who Invested in BackOps’ Series B?

Insight Partners led BackOps’ $42 million Series B round.

Theory Ventures, Construct Capital, Gradient Ventures, and 10VC also participated.

Why the Funding Matters

BackOps plans to use the new funding to expand its resolution layer to more processes across operations, finance, and customer service.

The company will also invest in its product and engineering teams and expand its go-to-market operations.

BackOps says every completed workflow records the context, decisions, actions, and outcomes involved. Over time, this data can help customers identify recurring patterns and improve their operational processes.

Who founded BackOps?

BackOps was founded in 2024 by Sean McCarthy and Henry Ou.

The company is headquartered in San Francisco, California.

Market and Business Growth

Over the past year, BackOps has been adopted by large enterprises in the grocery, retail, logistics, and distribution sectors. Its processes include carrier claims, chargeback disputes, complex billing, and forecasting.

In one deployment a national parcel platform used BackOps to manage its claim's operation. Since going live in December 2025, the system has processed more than 500,000 claims, and resolved 91% without human involvement.

Monthly claim volume increased 150-fold without additional hiring. The automated resolution rate also increased from 87% at launch to 99% currently.

In another deployment at a retailer operating 13 sites, BackOps reduced the average billing cycle from about 28 hours to 14 minutes. The company estimates this created capacity to handle higher volumes without adding five planned billing specialists and a supervisor, representing approximately $660,000 in projected fully loaded annual costs.

What Happens Next?

BackOps plans to expand its resolution processes across operations, finance, and customer service.

The company also plans to grow its product, engineering, and go-to-market teams as it expands the platform and supports more workflows.

"People have become the middleware between the systems and outside parties that keep supply chains moving," said Sean McCarthy, co-founder and CEO of BackOps. "AI changes what is possible, but companies shouldn't have to spend months building infrastructure before they can start solving real operational problems.

"Supply chains generate operational complexity every day, and much of that complexity is still managed by people doing manual, time-intensive work across disconnected systems," said Kenta Yaegashi, Vice President at Insight Partners.

Read More:California-Based Aristotle Raises $5M in Seed Funding