InstaLILY, a New York-based builder of autonomous AI systems for operational workflows, has raised $60 million in Series B funding. The round was led by Energize Capital with participation from Insight Partners, Home Depot Ventures, and United Rentals. Lily, the company's core product, learns a business's unique workflows, builds the software to execute them, and deploys inside existing ERP and CRM systems without requiring rip-and-replace migrations.
Deployment Bottleneck Reshapes Enterprise AI
The timing comes amid a market shift where horizontal AI tools struggle with the complexity of physical economy operations. Sierra AI raised $1.6B total at a $15.8B valuation while Decagon secured $481M total. Writer raised $369M. InstaLILY's approach targets back-office execution in distribution, field service, and logistics rather than customer-facing conversations or generic workflows.
Legacy Systems Create Operational Friction
Companies in industrial distribution, manufacturing, and healthcare run on fragmented legacy systems and tribal knowledge that standard software never captured. This leads to revenue leakage from inconsistent decisions across millions of SKUs and orders. Current solutions either require extensive configuration or decay once deployed because business conditions keep changing.
Lily Builds and Stays Deployed
Lily learns from real operations, constructs custom agents and automations, and continuously adapts as systems evolve. It contrasts with copilots that assist humans or consultants that eventually exit. The platform routes tasks across a hybrid architecture using Gemini models in the cloud and Gemma models on NVIDIA edge hardware via the Small Data Center, delivering 4x throughput and 76% lower latency.
As Amit Shah, CEO, stated:
"Every company is full of work that only it knows how to do. Lily turns that work into software, and it is running in days, not quarters."
Customer deployments show 98% reduction in field service diagnosis costs and 10% revenue uplift through faster quoting.
Strategic Investors Signal Customer Validation
Energize Capital led the round based on the need for infrastructure that handles rising energy and manufacturing demand. Insight Partners doubled down, citing the stickiness of software that runs more of a business over time. Home Depot Ventures and United Rentals participate as both investors and customers, providing direct validation from major players in construction and equipment rental.
Vertical AI Agents Capture Growing Spend
The AI agents market stands at $10.9B in 2026 and is projected to reach $52.62B by 2030 according to MarketsandMarkets. Vertical AI spend tripled to $3.5B in 2025. InstaLILY positions against UiPath's RPA-focused automation and Moveworks' ITSM agents by embedding inside legacy systems for revenue-generating workflows in the physical economy.
Founder Track Record Drives Execution
CEO Amit Shah previously scaled 1-800-Flowers from $200 million to $3 billion in revenue. The team draws from Palantir, Meta, Google, and Amazon. This background informs the focus on production deployments rather than pilots, with 5x year-over-year revenue growth and 25-plus enterprise customers including United Rentals, Henry Schein, and SRS Distribution.
International Expansion Underway
Offices in New York, San Francisco, London, and Toronto support hiring across engineering and growth roles as the company scales deployments.