Locus Robotics, an ecommerce warehouse robotics provider, said it secured $25 million in Series B funding led by Scale Venture Partners, a venture capital firm based in Silicon Valley that invests in “the future of work.” Existing investors also participated in this round.
The company said it will use the Series B funding to “extend its leadership position by making increased investments in product development and go-to-market activities,” which includes expansion into international markets. And Locus Robotics will continue investing in its “robot fleet.”
Locus Robotics offers autonomous, mobile robots designed to streamline ecommerce fulfillment operations for warehouse operators, enabling them to increase productivity and “manage labor costs and seasonally fluctuating order volumes” more effectively. Clients, which include DHL Supply Chain and Quiet Logistics, said they have experienced doubling or tripling of fulfillment speed and saved 30 percent or more in operating expenses.
Its solution is targeted to retailers and third-party logistics operators “looking to meet the shifting demands” of the e-commerce market, which is expected to grow by 20 percent in compound annual growth rate to become a $4 trillion global market by 2020, according to researchers at Nielsen.
Rick Faulk, the chief executive officer of Locus Robotics, said that e-commerce fulfillment warehouses “are under tremendous pressure to meet increasing demands for fast, accurate order fulfillment in the face of significant labor challenges. Locus Robotics’ collaborative robots allow warehouse operators to significantly increase worker productivity while economically closing the growing labor gap. In an economy largely dominated by Amazon, Locus arms independent operators with the means to compete effectively.”
Rory O’Driscoll, general partner at Scale VP, said that the firm looks for “huge markets, burning needs and compelling and innovative technologies that address those needs,” and that they “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.” O’Driscoll added that “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.”
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