Robotics Startup Exotec Secures $335 Million in Funding for Its Warehouse Products

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Keywords: Startup, Tech

Robotics startup company Exotec announced it raised $335 million in a business funding round. The funding was led by Goldman Sachs Asset Management and joined by 83North and Dell Technologies Capital.

Uniquely Positioned to Take Advantage of a Huge Opportunity

The Series D business funding round, which takes Exotec’s business valuation to $2 billion, will allow the robotics startup company to fund its large-scale deployment across North America, Europe, and Asia. Moreover, Exotec aims to use the raised funding to hire 500 new R&D engineers by 2025 to fast-track the development of its warehouse automation solution.

The COVID-19 outbreak underscored the importance of supply chain operations and their impact on everyday life as numerous communities were affected by the current disruptions and bottlenecks. Issues such as inventory delays and port congestion continue to weigh on the global supply chain, which has seen a 67% increase in disruption year-over-year. 

“Following the most significant supply chain disruptions of the modern era, there’s only room left for innovation,” said Romain Moulin, co-founder and chief executive officer of Exotec. 

“While the entire logistics sector is fraught with uncertainty, one of the most prevalent challenges is ongoing labor shortages. Exotec pioneers a new path: elegant collaboration between human and robot workers that delivers warehouse productivity in a lasting, far more sustainable way,” Moulin added.

Christian Resch, Managing Director of the Growth Equity arm within Goldman Sachs Asset Management, said Exotec is uniquely positioned to take advantage of a huge opportunity in the warehouse automation market. The robotics startup company is well-positioned thanks to “its global presence and strong track record of success with industry-leading retailers and brands.” 

Exotec’s products are revolutionizing the market while bolstering business growth amid market challenges, he added. Utilizing Exotec’s solutions, retailers and e-merchants can increase their warehouse productivity by 4x and storage capacity by 5x, according to the robotics startup. 

Exotec develops robots that can move in a unique three-dimensional pattern at a speed of 13 feet per second, accelerating and improving the picking and preparation processes. The Skypod solution uses robots that are capable of achieving 36 feet in height to allow high-density inventory storage and retrieval. 

Exotec has recently launched its new Skypicker product to reinforce the native Skypod System. Skypicker is an articulated arm that is capable of moving 600 items per hour.

Richard Tremblay, Logistics Manager at Decathlon Canada, believes that the Atlanta-based startup has managed to completely change the company’s logistic operations with its solutions. Decathlon, the largest sporting retailer on the globe, has recently deployed Exotec’s “Skypod System” product in its Montreal fulfillment center. 

After securing $90 million in a Series C funding round in 2020, Exotec has managed to increase its business revenue and customer base by 2x and 3x, respectively. The robotics startup company has also signed deals with eight new notable enterprise customers, which include Gap and Geodis. 

Today, the startup company has more than 300 employees around the world and plans to double that number by 2023. Moreover, Exotec collaborates with more than 30 global brands across e-commerce, grocery, retail, manufacturing, and 3PL industries.

Summary

Robotics startup company Exotec secured $335 million in a Series D business funding round led by Goldman Sachs Asset Management.

Adriaan Brits

An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.

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