The food supply chain industry just got a high-profile investor boost. Burnt, a Y Combinator startup automating back-office supply chain tasks with AI agents, has raised $3.8 million in seed funding led by PennyJar Capital - NBA star Steph Curry's venture firm. The funding signals growing investor confidence in applying AI to overlooked industries where manual processes still dominate trillion-dollar markets.
Burnt is betting that AI agents can succeed where traditional enterprise software has failed in the notoriously complex world of food distribution. The Y Combinator startup just closed a $3.8 million seed round led by PennyJar Capital, the venture firm backed by NBA champion Steph Curry, with participation from Scribble Ventures, Formation VC, and angel investors including Dan Scheinman.
The funding comes as food distributors grapple with workflows that haven't meaningfully changed in decades. Orders still arrive through email, phone calls, WhatsApp, voicemails, texts, and even faxes. Each one requires manual data entry into clunky ERP systems that many operators describe as a "necessary evil."
CEO Joseph Jacob knows this pain intimately. Growing up in a family that's been in the seafood business since his great-grandfather first exported shrimp from India to the US in the 1930s, Jacob worked on factory floors and managed hundreds of millions of pounds of seafood imports. "Everything was tracked on Excel sheets and a 20-year-old ERP system," Jacob told TechCrunch. "In a business with razor-thin margins, it's nearly impossible to succeed without good supply chain management."
After watching multiple software rollouts fail at his family's operations, Jacob realized the industry needed a different approach. Rather than forcing distributors to rip out existing systems, Burnt layers AI agents on top of what's already there. Their first agent, Ozai, automates order entry processes and can handle up to 80% of workflows currently stuck in legacy systems.
The results speak for themselves. Since launching in January, Burnt has processed more than $10 million in monthly orders across seafood, specialty goods, and packaged food distributors. One of the UK's largest food conglomerates, with billions in revenue, is currently implementing Burnt's system. The company is already generating six-figure revenue and growing steadily month-over-month, though Jacob declined to share exact figures.
Burnt's team brings deep industry credibility that sets them apart from what Jacob calls "tech tourists." Chief Product Officer Rhea Karimpanal - Jacob's childhood friend and now wife - comes from a restaurant family, while CTO Chandru Shanmugasundaram built software systems for restaurant applications. Jacob himself previously worked at , a Benchmark-backed B2B marketplace for restaurants and suppliers.
