AIToday

InstaLILY raises $60M for AI software-building tool

SiliconANGLE AI6h ago
InstaLILY raises $60M for AI software-building tool

Key takeaway

InstaLILY, which builds AI agents to automate business workflows, raised $60 million(約96億円) in Series B funding to expand its new Lily tool—an "AI forward-deployed engineer" that develops custom software applications tailored to each organization's specific processes. The company's revenue has grown more than fivefold in the past year, with customers including SunSource, Parts Town, and United Rentals across construction, logistics, healthcare, and field service sectors.

Summaries like this, in your inbox every morning.

Sign up free →

3 Key Points

  • What happened

    Enterprise automation startup InstaLILY closed a $60 million(約96億円) Series B round led by Energize Capital, bringing total funding to almost $100 million(約160億円). The company launched Lily, a new tool that uses AI to build, deploy and maintain custom software for business operations.

  • Why it matters

    InstaLILY targets physical goods and services firms with AI agents that automate complex workflows—sales teams can rank calls and identify cross-selling opportunities; operations teams can handle pricing and inventory questions. The company's revenue increased more than fivefold over the past year, and one customer used the platform to identify sales opportunities generating over $200 million(約320億円) in new revenue.

  • What to watch

    InstaLILY plans to expand Lily's capabilities, grow its teams, enter new industries, and build out data center infrastructure to let companies run its AI systems in the cloud or on-premises with enhanced security.

In Depth

InstaLILY, an enterprise automation startup, announced the close of a $60 million(約96億円) Series B funding round, bringing total capital raised to almost $100 million(約160億円). The round was led by Energize Capital with participation from previous investor Insight Partners and new backers Home Depot Ventures and United Rentals.

Simultaneously, the company unveiled Lily, a new tool designed to help organizations build, deploy, and maintain custom software for business operations. Lily is described as an "AI forward-deployed engineer" that works by being trained on an organization's business processes, enabling it to develop software applications tailored to each company's specific needs. Uses include building applications for pricing quotes, logistics planning, identifying sales opportunities, and serving as a diagnostic assistant for field technicians at remote locations. Once deployed, Lily integrates into an organization's existing software and systems, allowing it to adapt as data and processes evolve.

Founder and CEO Amit Shah explained the motivation behind Lily: each organization performs work that is unique to its operations and too specific for off-the-shelf software, forcing reliance on legacy systems and manual workarounds. "Lily turns that work into software, and it is running in days, not quarters," Shah said. InstaLILY's broader platform includes InstaWorkers—domain-specific AI agents controlled by InstaBrain, a specialized large language model layer—that assist sales teams with tasks like ranking calls, flagging churn risk, identifying cross-selling opportunities, and drafting quotes. Operations and support teams use them for pricing and inventory questions, coordinating returns, and parsing technical documentation.

The company's growth has been substantial. Revenue increased more than fivefold over the past year, driven by customer successes. InstaLILY highlighted two unnamed examples: a national distributor that identified and pursued new sales opportunities generating over $200 million(約320億円) in new revenue, and an industrial supply firm where Lily automated request-for-quote processes, eliminating hundreds of thousands of hours of manual work. Named customers span construction, logistics, healthcare, and field service sectors, including SunSource, Parts Town, SRS Distribution, United Rentals, ShipStation Global, Henry Schein, and PartsSource. Patrick Garcia, SRS Distribution's chief digital, AI and innovation officer, noted that many AI systems fail at scale when deployed at his company's size due to constant business evolution. "Lily has helped us build the software our teams need while working within the enterprise platforms, governance and processes we've already established," he said.

Looking ahead, InstaLILY plans to expand Lily's capabilities, grow its teams, enter new industries, and build out its data center infrastructure to enable customers to run AI systems in the cloud or on-premises with enhanced security for sensitive data.

Context & Analysis

InstaLILY operates in the enterprise automation space, targeting companies in physical goods and services industries where workflows are highly specific to each organization. The company's core offering, InstaWorkers, are domain-specific AI agents controlled by InstaBrain, a specialized large language model layer fine-tuned to understand each customer's business nuances. The new Lily tool extends this approach into software development itself, allowing companies to turn undocumented institutional knowledge and manual processes into automated software without relying on off-the-shelf products or lengthy implementation timelines.

The fundraise and customer results reflect strong demand for this approach. One unnamed national distributor identified and pursued sales opportunities worth over $200 million(約320億円) in new revenue using the platform; an industrial supply firm automated its request-for-quote process, eliminating hundreds of thousands of hours of manual work. These outcomes suggest that the market recognizes the value of AI tools that can adapt to enterprise-specific requirements and constraints. SRS Distribution's chief digital officer noted that Lily succeeded where many AI systems fail at scale—by working within the organization's existing enterprise platforms and governance structures rather than requiring wholesale process change.

FAQ

What does InstaLILY's Lily tool do?
Lily is trained on an organization's business processes and develops custom software applications for specific needs—such as pricing quotes, logistics planning, and identifying sales opportunities. It can also assist field technicians in diagnosing equipment problems, and adapts as the organization's data and processes evolve.
Who are InstaLILY's customers?
The company serves customers in construction, logistics, healthcare, and field service sectors, including SunSource, Parts Town, SRS Distribution, United Rentals, ShipStation Global, Henry Schein, and PartsSource.
How much has InstaLILY's revenue grown?
InstaLILY's revenue increased more than fivefold over the past year due to customer successes on its platform.

Get AI news like this every morning

AI-summarized, only the topics you pick — one digest a day via Email, Slack, or Discord.

Free · takes 30 seconds · unsubscribe anytime

Discussion

No discussion yet for this article

Stay ahead with AI news

Get curated AI news from 200+ sources delivered daily to your inbox. Free to use.

Get Started Free

Free · takes 30 seconds · unsubscribe anytime

1 minute a day. The AI essentials.

200+ sources · Email / LINE / Slack

Get it free →