AI Startup Rabot Raises $2 Million in Pre-Seed Funding

By James White | Saturday, 26 March 2022 | Startup, Tech

Startup company Rabot uses artificial intelligence (AI) to optimize warehouse operations and reduce errors in the packaging process. The warehouse automation business recently secured $2 million in pre-seed funding from investors to continue to develop its AI technology.

Securing New Support From Investors

The latest funding round for the startup business was led by an investment from early-stage venture capital firm Newfund Capital. The Paris-based investor targets startup companies that are “driving global change.” Newfund Capital’s portfolio includes cloud-based telecommunications Aircall, social commerce startup company Mustard, and farmer insurance business OKO, among others.

"Rabot's vision AI solution is not only solving current challenges of visibility and productivity in e-commerce fulfillment warehouses today, but also improving collaboration and communication within warehouse operations teams," said Henri Deshays, an entrepreneur and investor of Newfund Capital. "We are excited to partner with Channa, Isura, and Sandeep on their journey."

During the pre-seed funding round, Rabot found additional support for its warehouse automation technology from San Francisco-based venture capital firm BootstrapLabs, as well New York-based firms Forum Ventures and Interlace Ventures. Several angel investors within the supply chain industry also participated in the funding round for the warehouse automation business.

The startup company plans to use funding generated from investors to grow its business by acquiring new customers and scaling the implementation of its AI technology with existing customers. Rabot claims that its warehouse automation software can double the productivity of new warehouse employees and reduce order resolution time by 80%.

Automating Warehouses With AI and Computer Vision

Rabot was founded in 2018 by entrepreneurs Channa Ranatunga, Isura Ranatunga, and Sandeep Suresh. With 25+ years of shared experience in the industry, the team of entrepreneurs set out to optimize ecommerce fulfillment centers using a system of cameras and AI software.

First, cameras are mounted above packaging stations within the customer’s warehouse. Then, the Rabot AI uses information from the digital images to determine how many items were added to the package and whether they were correct. The platform is also used to determine whether additional steps such as adding coupons, invoices, or bubble wrap were performed appropriately.

Simultaneously, the system can be used to track how much time is spent on specific parts of the packaging process, allowing warehouse operators to address areas of improvement with workers as needed.

Taking Advantage of Ecommerce Trends

The startup company is seizing the opportunity presented by the rapid growth of the ecommerce industry. According to market research firm eMarketer, retail ecommerce sales are expected to reach more than $7.3 trillion by 2025.

As the industry continues to grow, the market for warehouse automation technology is predicted to expand as well. Market research estimates that the global warehouse automation market will reach nearly $31 billion by 2025. The industry is expected to register a CAGR of 13.6% between 2021 and 2025.

Rabot may have to compete alongside other businesses in the warehouse automation industry, such as those that offer robotics alternatives to traditional workers in packaging stations. Meanwhile, startup company VH Technology is working on its own computer vision system for warehouses and fulfillment centers.

About the Author

James White

James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.