Canals Raises $35M in Funding Led by Base10 Partners

The company plans to use the funds to speed up product development, grow its automated workflow features, and build transaction tools for suppliers, distributors, and contractors.

Canals is a trusted partner to more than 100 distributors, including DSG, The Kendall Group, and Locke Supply, as well as other major global distributors. The company has processed over 8 million sales orders and $5 billion in payables, with strong sales growth that exceeds top tech benchmarks—all without raising venture capital.

With customer feedback driving product development, Canals has grown from an AI sales order entry tool into a full AI workflow platform. The platform now supports teams across sales, customer service, accounting, purchasing, and receiving.

“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.”

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“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.”

About Canals

Founded by Michael Delgado and Erez Arnon, Canals is an AI operating system for customer-focused distributors. It automates workflows across sales, customer service, accounting, purchasing, and receiving to improve speed, accuracy, and consistency. By reducing manual work and dependence on internal knowledge, the platform helps companies operate more efficiently, and with better visibility at scale. The tools also help teams respond to customers faster, become more proactive and build stronger relationships.

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