# Pax AI

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/pax-ai

- Industry: Software
- Headquarters: San Francisco, US
- Website: www.paxai.com
- Total disclosed funding: $4.5M
- Latest round: Seed (Apr 9, 2025)
- Investors on record: 8

## About

Pax AI is a technology company that provides AI-driven solutions for optimizing duty drawback processes, enabling clients to recover duty payments more efficiently and effectively.Pax AI specializes in automating duty drawback services through advanced AI algorithms. Founded in San Francisco, US, the company raised USD 4.5 mn in Seed funding on April 9, 2025, led by Initialized Capital with participation from various investors. The founder's prior experience or history is not stated.Pax AI specializes in delivering an innovative, AI-powered duty drawback solution designed to streamline and maximize the recovery of duty payments for various stakeholders, including brokers and claimants. The company's core offering employs proprietary algorithms that meticulously analyze data to identify the maximum recoverable duties for clients, ensuring they reclaim every dollar possible while also expediting payment processes. This service is particularly beneficial for businesses engaged in international trade, where duty refunds can play a critical role in cash flow management. Pax AI's technology addresses challenges such as the complexities of duty filing and the stress associated with audits by providing continuous drawback services that simplify these processes. The company's products are marketed primarily to clients in North America and Europe, focusing on importers and exporters who seek to optimize their operational efficiency and financial performance.Pax AI generates revenue primarily through subscription-based models and partnerships, catering to a B2B clientele that includes both brokers and claimants within the international trade industry. Clients typically engage with Pax AI's services by subscribing to their platform, which offers a range of features designed to facilitate seamless duty drawback filings and management. Revenue is structured around the subscription fees for access to the AI-driven platform, which enables users to harness the capabilities of the proprietary algorithms. This strategic pricing model is aimed at providing value through enhanced refund maximization and time savings. The firm's strong emphasis on technology integration positions it favorably for sustained revenue generation as clients increasingly seek efficient solutions for duty recovery.In April 2025, Pax AI raised USD 4.5 mn in Seed funding led by Initialized Capital, with participation from Basis Set Ventures, Flexport Ventures, General Catalyst Partners, Sancus Capital, Soma Capital Management, Transpose Platform Management, and Z Venture Capital. The company intends to utilize the funding to expand its team, enhance its automated refund system, and support platform integration for brokers and importers. Future product launches are being designed to further improve duty drawback functionalities, with plans for geographic expansion focusing on increased presence in Europe and Asia by 2026.

## Funding rounds

- Seed, Apr 9, 2025, $4.5M — General Catalyst Partners, Initialized Capital, Z Venture Capital, Soma Capital Management, Transpose Platform Management, Basis Set, Flexport Ventures, Sancus Capital

## Investors

- General Catalyst Partners (https://capitalatlas.ai/funds/general-catalyst-partners) — Seed
- Initialized Capital (https://capitalatlas.ai/funds/initialized-capital) — Seed
- Z Venture Capital (https://capitalatlas.ai/funds/z-venture-capital) — Seed
- Soma Capital Management (https://capitalatlas.ai/funds/soma-capital-management) — Seed
- Transpose Platform Management (https://capitalatlas.ai/funds/transpose-platform-management) — Seed
- Basis Set (https://capitalatlas.ai/funds/basis-set) — Seed
- Flexport Ventures (https://capitalatlas.ai/funds/flexport-ventures) — Seed
- Sancus Capital (https://capitalatlas.ai/funds/sancus-capital) — Seed