Relay Raises $36M Led by Customer International Paper

Relay, a Raleigh-based startup making smart communication devices for frontline workers, has raised $36 million in a round led by one of its largest customers, International Paper, the company told Axios. Cerity Partners and G2 Venture Partners also participated.

The fresh capital comes with growth plans attached. CEO Chris Chuang told Axios the company intends to hire around 100 workers over the next year. Relay currently employs about 300 people, after growing fast enough in recent years to outgrow its space in the Advance Auto Parts tower in North Hills. It now subleases space at Bandwidth's headquarters near Lenovo Center.

Relay spun out of Bandwidth, the Raleigh telecom company, and has been one of the fastest-growing startups in the Triangle. Founded in 2015 as Republic Wireless, the company has now raised a total of $90 million from investors. It declined to disclose its post-round valuation, but PitchBook pegged its last valuation at $369 million.

The core product is a smart walkie-talkie that lets managers communicate with workers remotely. Because the device is connected to the internet, it also delivers real-time location data and insights. It includes smartphone app integrations, can perform real-time language translation between workers, and can function as a safety alert when a team member needs immediate help.

The customer base stretches across sectors. Chuang said the tool has proven useful in hospitality — hotel workers use the devices to communicate between floors — as well as in health care, education and manufacturing. International Paper, the round's lead investor, ranks among Relay's largest customers.

Chuang framed the funding as a pivot point. The round, he said, is about reaching the company's next milestones: moving from a business that sold a smart walkie-talkie capable of replacing a traditional Motorola device to one that helps companies improve their AI capabilities. Relay's devices can bring AI use cases to frontline workers while collecting data companies can use to fine-tune operations or make decisions, he said. The company also plans to keep investing in next-generation hardware for frontline settings such as factories.

Reflecting on the capital required to get this far, Chuang was blunt about the competitive stakes. "It took a long time and a lot of money to build something that could compete with Motorola, who quietly, I would say, has a monopoly on the [frontline communication] industry," he told Axios. "But what we always saw was if we could do that, we could be this device that connects these workers to the cloud and can be the vehicle for software and now AI."

With $36 million in hand and a major industrial customer now on its cap table, Relay is betting that hardware built to beat Motorola becomes the distribution channel for AI across the frontline workforce.