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Technology company Rundoo has raised $30 million in Series B financing to expand its AI-powered technology platform for independent supply stores across North America.
The round was led by Battery Ventures with participation from existing investors Bessemer Venture Partners and CRV, bringing Rundoo’s total funding to $48 million.
Founded in 2021, Rundoo provides an AI-first system of record designed to help independent hardware, paint, lawn and garden, farm and feed, and lumber stores operate more efficiently and compete with large corporate retailers.
Rundoo plans to use the new funding to expand its engineering team in Redwood City and its go-to-market team in Chicago. It also invest in additional technology and product capabilities for its customers.
Rundoo currently serves more than 500 stores across the U.S., Canada, and the Caribbean.
Rundoo brings multiple business functions together through a unified platform that includes point-of-sale, e-commerce, customer relationship management, loyalty programs, general ledger, and other operational tools.
The platform is designed to help independent stores increase sales, lower costs, improve margins, and deliver more competitive customer experiences.
A key part of Rundoo’s platform is Dooey, its AI agent. For example, a garden center owner can ask Dooey to create a purchase order using historical sales, upcoming weather conditions, and local landscaper bids.
Dooey can also recommend targeted promotions based on predicted customer demand. This gives smaller retailers access to data-driven capabilities that have traditionally been easier for large national chains to deploy.
“Our clients supply the materials that allow our communities to build and care for the world around us, and our technology helps them do that better and more efficiently,” said Nick Hershey, Rundoo’s co-founder and CEO. “With continuing competition from big-box stores, macroeconomic challenges like tariffs and oil shocks, and ever-changing consumer expectations, owning an independent supply store is a challenging endeavor. Our platform gives independent store owners the same operational power that much larger corporations use to grow revenue and expand.”
Kent Bennett, board member and partner at Bessemer Venture Partners who led the company’s Seed and Series A rounds, continued: “Supply stores have been historically overlooked by Silicon Valley, despite being the lynchpin for the built-world and the conduit for a massive slice of global commerce. And it turns out these suppliers are every bit as eager to leverage modern technology including AI as their counterparts in other more visible industries. Nick and Andrew have built a world class team obsessed with making life easier for the owners and employees in this massive industry.”
Rundoo also works with distributors and manufacturers to connect independent retailers with technology and product information.
The company partners with businesses such as Benjamin Moore, connecting directly with its tint software so independent dealers can accurately match colors and retain tint information for customers.
Independent retailers are also using Dooey as an always-on business analyst.
At Berry’s Hardware in Dumas, Arkansas, the AI agent provides daily summaries covering top-selling products, new customers, unusual returns, and products sold below target margins.
Rundoo was founded by Nick Hershey and Andrew Beckman who met while attending Stanford University. Hershey previously worked as a hedge fund trader while Beckman spent several years as a software engineer in Silicon Valley before joining Hershey to launch Rundoo.
With Battery Ventures general partner Michael Brown leading the investment, Brown will also join Rundoo’s board. He previously backed ServiceTitan, a technology company serving commercial and residential trades businesses.
