Autonomous robot provider Locus Robotics has secured $25mn in Series B funding led by Scale Venture Partners, a Silicon Valley-based venture capital.
Locus Robotics is a leading warehouse robotics solution provider for retailers and third-party logistics (3PL) operators looking to meet the shifting demands of the booming e-commerce market, expected to grow by 20% (CAGR) to become a $4trn global market by 2020, according to Nielson.
“E-commerce fulfilment warehouses are under tremendous pressure to meet increasing demands for fast, accurate order fulfilment in the face of significant labour challenges,” said Rick Faulk, CEO of Locus Robotics.
“Locus Robotics’s collaborative robots allow warehouse operators to significantly increase worker productivity while economically closing the growing labour gap. In an economy largely dominated by Amazon, Locus arms independent operators with the means to compete effectively.”
Locus’s robotics are designed to enabled warehouse operators to achieve more efficient e-commerce fulfilment operations, while simultaneously managing both labour costs and seasonally fluctuating order volume.
Locus says its customers are already seeing doubling or tripling of fulfilment speed with near-100% accuracy, while saving 30% or more in operating expenses. The company’s innovative Robots-as-a-Service (RaaS) subscription business model allows customers to solve this challenge without a large-scale capital investment.
“We look for huge markets, burning needs, and compelling and innovative technologies that address those needs,” said Rory O’Driscoll, General Partner at ScaleVP.
“We try to invest just when that innovative technology is ready to jump from an interesting idea that might happen, to a core business imperative that is happening right now. For collaborative robotics the time is right now.
“Robots can work safely with humans, each doing what they do best, to double human productivity and lighten the physical workload in industries like logistics. We anticipate an explosion of this trend in the next few years, and Locus will be at the heart of that trend.”
Adrian Kumar, Vice President, Solutions Design North America at DHL, a Locus customer, said: “DHL Supply Chain takes digitisation seriously and we have made some significant strides partnering with Locus Robotics.
“Integrating LocusBots into one of our sites has increased productivity two-fold and the associate feedback is positive. Locus has been agile with their ability to adapt and change as we learn from these innovations.
“When we can provide our customers with more efficient and effective operations, we all win. We are eager to further develop our relationship as our commitment to continuous improvement is solid.”