Rundoo closed a $30 million Series B, led by Battery Ventures, to scale its AI native operating platform for independent hardware, paint, and supply stores, lifting total funding to $48 million.
Rundoo raised a $30 million Series B led by Battery Ventures, with participation from existing investors Bessemer Venture Partners and CRV. This brings the company’s total capital raised to $48 million. Battery Ventures General Partner Michael Brown led the investment and joined Rundoo’s board.
The company, founded in 2021 in Redwood City, California, by Stanford graduates and college roommates Nick Hershey (CEO, previously a hedge fund trader at firms including Bridgewater and Citadel, and a product manager at Google) and Andrew Beckman (software engineer background), builds an AI native system of record and operating platform specifically for independent supply stores. These include hardware, paint, lawn and garden, farm and feed, and lumber retailers, multi generational local businesses that supply communities with physical goods for building, maintenance, and care.
How Rundoo works?
Rundoo unifies point of sale (POS), e-commerce, customer relationship management (CRM), loyalty programs, general ledger/accounting, inventory management, and payments into a single system. At its core is Dooey, an AI agent that operates on the store’s own sales, inventory, charge account, and operational data. Capabilities include:
- Generating purchase orders based on historical sales, seasonal patterns, weather forecasts, and local demand signals (such as landscaper bids).
- Recommending promotions and supporting customer outreach (e.g., time-bound discounts on high potential items).
- Delivering daily plain language business recaps covering top sellers, new customers, unusual returns, and below margin sales.
- Providing price comparisons against nearby competitors, AI generated reports on margin or inventory questions, and order recommendations that integrate with vendors and distributors.
The platform is designed for industry specific workflows such as paint tinting and color matching (with integrations like Benjamin Moore’s proprietary software), contractor charge accounts and specialized pricing, bulk/by-weight feed, nursery stock, dimensional lumber inventory, and co-op catalogs. It partners with manufacturers, distributors, and buying groups to create distribution advantages for independent retailers.
Rundoo serves more than 500 independent stores across the U.S., Canada, and the Caribbean. Company-reported outcomes after switching include average first year sales growth of 17%, reductions of more than 25% in receivables (charge account balances), and typical gross margin improvements of 1–2%. Customer feedback highlights ease of use, strong support, faster checkouts, better receivables collection via mobile invoicing and payments, and the value of AI insights for weekly sales meetings and daily operations. Over half of customers reportedly use Rundoo AI daily.
Recommended: Databricks Closes $5 Billion Strategic Funding Led By Coatue
How will Rundoo use the funds?
Proceeds will expand the engineering team in Redwood City to accelerate product development and new features, grow the go to market organization in Chicago to scale customer acquisition, and continue investing in technology tailored to independent retailers. The focus remains on empowering these stores to compete more effectively against big box chains (Home Depot, Walmart, Target, etc.) and e-commerce players while navigating macroeconomic pressures such as tariffs and cost volatility.
Prior rounds totaled approximately $18 million: a $2 million pre seed (2021, led by Bessemer’s Kent Bennett, with Plug & Play, Quiet Capital, and Sequoia participation), a $5 million seed (led by CRV’s Caitlin Bolnick Rellas), and an $11 million Series A (2024, led by Bessemer and CRV). The Series B marks the entry of Battery Ventures as a new lead investor with board representation.
Independent supply stores form a large but underserved segment of retail, often still reliant on decades old legacy software while facing competition from better resourced national chains. Battery Ventures draws parallels to the modernization opportunity it saw with ServiceTitan in the trades sector: owners are not behind the times, but their tools are. Rundoo’s approach layers a modern, AI native ERP/POS foundation with an actionable AI agent, aiming to deliver the analytical and operational power of large enterprises at a scale and cost suitable for independents. Existing investors emphasize the founders’ complementary strengths, transparency, and the industry’s readiness for modern technology including AI. The company has stated it has no intention of selling and maintains founder veto rights on acquisitions, positioning the raise as fuel for continued product development and market expansion rather than a path to exit.
The $30 million Series B validates Rundoo’s traction in a specialized vertical, strengthens its balance sheet for engineering and sales scaling, and positions the company to deepen AI driven advantages for independent retailers in a competitive and operationally complex industry.
Please email us your feedback and news tips at hello(at)techcompanynews.com
