Canals AI

About Canals AI

Canals AI provides an end-to-end operating system powered by artificial intelligence for the wholesale distribution industry, automating workflows to enhance speed, accuracy, and efficiency. Founded in 2022 by CEO Michael Delgado and CTO Erez Arnon, the Miami-based company aims to modernize the $8.2 trillion wholesale distribution sector by tackling operational challenges like inconsistent data and manual processes. The founding team combines experience from successful tech startups with a focus on solving real-world problems for distributors. Delgado has a background that includes co-founding Vested, which was acquired by MetLife, while Arnon brings product leadership experience from world-class technology companies.

The company operates as a B2B software provider, targeting distributors, manufacturers, and contractors within the industrial supply chain. Canals serves over 100 distributors, including notable clients like The Kendall Group, Locke Supply, and Dakota Supply Group (DSG). Before securing its first venture capital, the bootstrapped company was profitable and has processed over 8 million sales orders and $5 billion in payables. In May 2026, Canals announced a $35 million funding round led by Base10 Partners to accelerate product development.

The platform's suite of AI tools is designed to integrate with a client's existing Enterprise Resource Planning (ERP) system and automates workflows across Sales, Customer Service, Accounting, Purchasing, and Receiving. Key features include Sales Order Entry, which converts customer emails, PDFs, and even handwritten notes into quotes or orders automatically. The Accounts Payable Automation tool performs a three-way match between invoices, purchase orders, and receipts, flagging discrepancies for review. Additional functionalities include AI-driven inquiry handling, purchase order tracking, accounts receivable automation, and a 'Live Voice' feature that transcribes spoken orders in real-time. Customers have reported significant performance improvements, such as doubling quote conversion rates and achieving up to 96% touchless invoice processing.