AI Startup Burnt Secures $3.8M to Transform Food Supply Chains
Food supply chains remain notoriously fragmented and inefficient, with orders arriving through multiple channels and manual entry consuming valuable staff time. Despite decades of software attempts to modernize this sector, many solutions have failed to meet industry needs. Burnt, a Y Combinator-backed startup, believes artificial intelligence agents can finally overcome these challenges by automating critical back-office supply chain tasks. The company recently closed a $3.8 million seed round led by Penny Jar Capital, the venture firm founded by NBA star Steph Curry.Founder’s Deep Roots in Seafood Supply Chain Inspire Innovation
Joseph Jacob, Burnt’s co-founder and CEO, brings a unique perspective shaped by his family’s multigenerational involvement in the seafood industry. From his great-grandfather’s pioneering shrimp exports from India to the U.S. in the 1930s to his own experience managing large seafood imports, Jacob intimately understands the sector’s operational challenges. Jacob’s early career included working on factory floors and observing firsthand the inefficiencies in legacy supply chain systems, which rely heavily on outdated ERP software and manual spreadsheets. These experiences motivated him to build technology tailored to the industry’s specific needs.Decades of Software Failures Highlight Need for AI-Driven Solutions
The food distribution market is dominated by small and mid-sized players who have long struggled with complex, expensive software rollouts that often fail or stall. Many companies continue to rely on spreadsheets and cumbersome enterprise resource planning (ERP) systems.“Everyone we talk to calls their ERP a necessary evil,” said Joseph Jacob. “Traditional software forced teams to rip out old processes and adopt new ones. With AI, you don’t need to change the process; you just get the work done.” Burnt’s strategy is to deploy AI agents that integrate with existing systems rather than replace them, enabling seamless automation without disrupting established workflows.Ozai AI Agent Automates Up to 80% of Order Entry Workflows
Currently, sales representatives at food distributors receive orders via email, phone calls, WhatsApp, voicemails, texts, and even faxes. Manually inputting these orders is time-consuming and error-prone. Burnt’s first AI agent, Ozai, automates the order entry process, handling up to 80% of workflows trapped in legacy systems. Since its launch in January, Burnt has processed over $10 million in monthly orders across seafood, specialty goods, and packaged food distributors. The startup is onboarding major clients, including one of the United Kingdom’s largest food conglomerates, and is already generating six-figure monthly revenue with steady growth.Industry Expertise Builds Trust in a Skeptical Market
Burnt’s leadership team combines deep industry knowledge with technical expertise. Chief Product Officer Rhea Karimpanal, Jacob’s childhood friend and spouse, hails from a family of restaurateurs, while CTO Chandru Shanmugasundaram has extensive experience developing software for restaurant applications. This insider perspective helps Burnt gain credibility in a sector wary of technology providers lacking operational understanding.Steph Curry’s Penny Jar Capital Leads Seed Round Amid Market Skepticism
Despite the large and fragmented $1 trillion U.S. food market, many venture capitalists remained hesitant to invest in AI solutions targeting food distributors. Burnt’s founders had to craft a compelling narrative to demonstrate the vast untapped opportunity.“Two decades of missed software adoption is a massive opportunity. Investors who understand this know it can be huge if executed right,” said Joseph Jacob.
FinOracleAI — Market View
Burnt’s approach to automating manual food supply chain processes with AI agents addresses long-standing inefficiencies in a complex and fragmented market. By integrating with existing ERP systems rather than replacing them, the startup minimizes disruption while unlocking significant operational improvements.- Opportunities: Large, underserved market with trillions in annual transactions; potential to scale across various food categories and geographies; increasing investor interest in AI-driven supply chain solutions.
- Risks: Adoption barriers due to entrenched legacy systems and operator skepticism; competition from established enterprise software vendors; dependence on continued AI accuracy and reliability.
Impact: Burnt’s AI-powered automation has the potential to enhance efficiency and profitability for food distributors, driving wider technology adoption in an industry long resistant to change.
Contents
AI Startup Burnt Secures $3.8M to Transform Food Supply ChainsFounder’s Deep Roots in Seafood Supply Chain Inspire InnovationDecades of Software Failures Highlight Need for AI-Driven SolutionsOzai AI Agent Automates Up to 80% of Order Entry WorkflowsIndustry Expertise Builds Trust in a Skeptical MarketSteph Curry’s Penny Jar Capital Leads Seed Round Amid Market SkepticismFinOracleAI — Market View
