UPDATED 13:03 EST / JANUARY 17 2022

EMERGING TECH

Warehouse robot maker Exotec raises $335M at $2B valuation

France-based robotics startup Exotec SAS today said that it has raised $335 million in funding to hire an additional 300 employees and deploy its hardware at more warehouses worldwide.

The growth equity arm of Goldman Sachs Asset Management led the funding round. Dell Technologies Inc.’s venture capital arm and 83North, both returning investors, participated as well, bringing Exotec’s total outside funding to $477 million and its valuation to $2 billion. 

Exotec’s flagship offering is a warehouse automation platform called the Skypod. It consists of multiple components including not only robots but also warehouse management software, merchandise storage equipment and other products. 

A company deploying the Skypod receives modular shelves from Exotec that are designed to store the merchandise kept in a warehouse. Exotec’s shelves can be arranged vertically in a configuration up to 39 feet high. Storing merchandise vertically allows a company to maximize the amount of goods that it can place on each square floor of warehouse space at its disposal, which increases operational efficiency. 

Exotec deploys its shelves together with a fleet of compact logistics robots each capable of carrying more than 60 pounds of goods. When a customer makes an order, one of the robots travels to the warehouse shelf containing the requested item and retrieve it so that the package delivery process may begin. If the requested item is stored on a shelf located 20 feet above the ground, the robot can travel vertically to reach it and return the same way.

Exotec expanded its product portfolio last year by adding a robot arm called the Skypicker. The machine is designed to perform tasks such as moving boxes from one warehouse conveyor belt to another. The Skypicker can lift objects weighing up to 4.4 pounds, Exotec says, and can move as many as 600 items every hour.

Exotec revenue more than doubled from 47 million euros in 2020 to an estimated 105 million euros last year, suggesting that there’s strong market demand for its robots. The startup sells its hardware to companies in areas including retail, manufacturing and logistics. Exotec disclosed today that it has signed up more than 30 clients to date, including eight “large enterprise customers” since its last funding round in 2020.

Using the newly raised $335 million investment, Exotec plans to launch more Skypod and Skypicker deployments around the world for customers. The startup will hire 300 more employees over the next year to support growth efforts. In the longer term, Exotec intends to hire 500 additional engineers by 2025, which hints that the startup plans to expand its product portfolio with yet more warehouse automation solutions over time. 

“Exotec is well-positioned to seize the enormous warehouse automation market opportunity both because of its global presence and strong track record of success with industry-leading retailers and brands,” said Christian Resch, managing director of Goldman Sachs Asset Management’s growth equity business. “Exotec builds scalable solutions that are an accelerant for change and supports business growth despite market disruptions.”

The demand for warehouse automation equipment is driven partly by retailers that are deploying robots to help them increase operational efficiency and match the competitive delivery times offered by major e-commerce companies. Exotec is not the only tech firm targeting this growing market opportunity.

Zebra Technologies Corp., a Fortune 500 company that makes industrial gear and equipment for warehouses, last year acquired robotics startup Fetch Robotics Inc. in a $290 million deal. Through the acquisition, Zebra Technologies obtained the startup’s portfolio of fulfillment center robots. The machines can perform tasks ranging from counting items on warehouse shelves to moving merchandise between conveyor belts.

The growing adoption of warehouse automation technology is driving business growth not only for robot makers, but also a broader ecosystem of startups that offer related solutions. Formant Inc., for example, recently raised $18 million to boost the adoption of its robot fleet management software. The software helps robot operators with tasks such as hardware maintenance. 

Image: Exotec

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