Relay raises $36M to digitize frontline worker comms

Relay, a startup selling smart radios to industrial and logistics firms, has raised $36 million in new funding. The round was led by International Paper, with participation from wealth manager Cerity Partners. It brings Relay’s total capital to over $90 million.

The company positions its devices as a way to capture real-time voice and data from warehouse workers, drivers, and field crews. That pitch has clearly found traction with large buyers. International Paper, a packaging manufacturer, is not just an investor but also a customer, deploying Relay’s hardware across its mills and distribution centers.

Relay’s funding arrives as industrial software starts to move beyond outdated tools. For years, frontline workers used analog radios or consumer messaging apps, neither of which work well in regulated environments. Relay is betting that enterprises will pay for hardware and software built for voice, location, and task management—without requiring workers to carry a smartphone. The company says its devices now handle millions of messages per month across logistics, retail, and manufacturing sites.

The round also reflects a shift in what enterprises value. Over the past year, StartupReader has covered several companies—Veridion, Instinct, and a $3M seed startup building AI agents—that focus on live business data rather than traditional dashboards or productivity tools. Relay fits that trend, but with a difference: its intelligence layer runs on dedicated hardware, not cloud software. That could matter in places where workers don’t use personal devices or where cellular signals are weak.

Still, Relay’s approach has risks. Most industrial tech startups sell software subscriptions; Relay’s hardware focus means higher costs and longer sales cycles. The company hasn’t shared details on customer retention or profitability, making it hard to know if buyers stay after the initial rollout. International Paper’s dual role as investor and customer suggests early success, but scaling beyond a few large accounts may be difficult.

The funding also shows how enterprise tech is attracting new kinds of investors. Cerity Partners, a wealth management firm, doesn’t usually back early-stage startups. Its involvement suggests Relay is selling more than a tech product—it’s pitching operational efficiency to executives who control spending. That could help Relay avoid the slowdown hitting SaaS companies over the past year and a half.

What’s next? Relay may expand into healthcare or construction, but both have stricter rules. If it can navigate those, it could become a rare hardware-focused enterprise startup that grows without burning cash. If not, this round might be its peak. Either way, the story shows that frontline workers—long ignored by enterprise software—are finally getting tools built for them.

Sources: siliconangle.com