AI-Powered Distributor Automation Platform InstaLILY Raises $25M in Funding - Modern Distribution Management

AI-Powered Distributor Automation Platform InstaLILY Raises $25M in Funding

InstaLILY raised Series A funding to expand its AI-powered platform that deploys industry-specific virtual workers to automate tasks.
InstaLILY

AI-powered distribution automation platform InstaLILY announced it has closed on a $25 million Series A funding led by Insight Partners, with participation from Perceptive Ventures and Marvin Ventures.

The New York City-based company said the new funding will enable it to scale its catalog of AI “Teammates” in the form of vertical-specific “InstaWorkers” that perform actual tasks within existing distributor business systems like ERPs and CRMs. These AI agents execute work directly in legacy software without requiring system overhauls or manual integrations.

According to InstaLILY, the platform is designed specifically for distribution-heavy industries where automation has typically fallen short. InstaWorkers are trained on industry-specific processes and can operate autonomously within fragmented software environments to complete multi-step tasks.

InstaLILY said InstaWorkers are capable of understanding domain-specific processes, working across various enterprise tools and executing full workflows rather than simply offering suggestions. Human-in-the-loop oversight is available when needed, but the default model is fully autonomous task execution.

“Hiring a domain-trained AI Teammate is one of those rare ideas that’s both intuitive and built to scale,” Insight Partners Principal Crissy Costa Behrens said in an Aug. 27 news release. “InstaLILY is executing where horizontal AI tools stall — delivering vertical AI that doesn’t just assist but actually owns outcomes. With InstaWorkers, InstaLILY is helping build a better future of work: grounded in actions, not suggestions.”

MDM’s 2Q25 MarketPulse Report (store link) 

Companies are already using InstaWorkers to support sales, service and operations teams, according to InstaLILY. For example, it cited that a $10 billion construction-supply distributor deployed AI sales support agents to assist 1,500 managers by turning sales data into actionable insights. A major OEM platform uses InstaWorkers to analyze fault data and identify likely replacement parts from large inventories, allowing technicians to focus on repairs. In another case, a private equity-backed insurance provider uses InstaWorkers to handle claims denials, cutting manual review time by 70%.

With its Series A funding, InstaLILY plans to expand its library of pre-trained InstaWorkers into new verticals, improve integration with enterprise systems, and support adoption across more business functions. InstaLILY added that its team is enhancing multimodal capabilities, allowing agents to process voice and video inputs to support new applications in field service, contact centers and hybrid human-robot environments.

Per the InstaLILY website, distributors on the platform include Parts Town, SRS Distribution, Copper State Bolt & Nut, Heritage Pool Supply Group, National Nail and PartSelect.

In the Store: MDM’s U.S. MRO Market Trends Report 

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