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Exclusive: Paxafe raises $9M Series A to automate the cold chain

Illustration of a robot arm holding an ice cube with a stack of money frozen in the center.

Illustration: Aïda Amer/Axios

Paxafe, a cold chain logistics startup, raised a $9 million Series A to expand its partnerships and capabilities, CEO Ilya Preston tells Axios exclusively.

Why it matters: About 144 million tons of food could be saved in developing countries with proper cold storage, according to a Columbia Climate School report.

Zoom in: The round, which brings its total funding to around $14 million, was led by Framework Venture Partners.

  • Microsoft's M12, Rosecliff Ventures, Elevate Ventures, AngelList Quant Fund, Gaingels and Mana Ventures, along with existing investors Ubiquity Ventures and Venture 53, also joined the round.
  • The funding should get it toward profitability around 2 1/2 to three years depending on how it chooses to grow, Preston says.

How it works: The company uses AI and existing IoT tags on shipments to automatically identify operational cold chain risks and offer recommendations to ensure perishable goods are delivered on time.

  • With issues concerning temperature-sensitive products, the root cause analysis and the corrective action reports are often done manually, Preston says.
  • Combining tag data with third-party and manufacturer data, Paxafe is designed to map workflows that give users actionable insights about their cold chains.

What's next: The company is building out partnerships and integrations with customers, as well as direct and indirect service providers for mutually beneficial data sharing.

  • The company also hopes to deepen its capabilities around packaging validation and scenario analysis planning later this year, as well as commercialize its large language model.

The bottom line: "We want to continue to drive the industry to get to zero waste in terms of cold chain," Preston says, adding this could be achieved by automation.

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