Robotic order picking automation vendor Exotec raises $335 million

Today Exotec, a global leader in warehouse robotics, announced $335 million in Series D funding, at a $2 billion valuation.

The Growth Equity business within Goldman Sachs Asset Management led the round with follow-on investments from 83North and Dell Technologies Capital. Exotec will leverage the funds to continue to launch large-scale deployments in North America, Europe, and Asia for global brands, the announcement explained. The company also plans to hire 500 new R&D engineers by 2025 to accelerate the development of its warehouse automation technology.

The company positions its flagship Skypod solution—which uses a combination of mobile robotics, high-density storage infrastructure for bins, and goods-to-person workstations—as helpful to companies seeking to cope with disruptions and a tight labor market. A recent report from Resilinc revealed that supply chain disruptions were up 67% year-over-year, Exotec noted, driving the need for innovative solutions to help companies excel at efficient order fulfillment in spite of all the big challenges.

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

“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 in the Growth Equity business within Goldman Sachs Asset Management. “Exotec builds scalable solutions that are an accelerant for change and supports business growth despite market disruptions.”

“Exotec warehouse robotics have transformed our logistics operations in multiple markets around the world, most recently in our Montreal fulfillment center,” added Richard Tremblay, Logistics Manager at Decathlon Canada. “We value the unique combination of speed, performance, and flexibility that allows us to provide leading service to our customers. We look forward to a long-term partnership with Exotec.”

Exotec doubled its revenue and tripled its customer base since closing its $90 million Series C funding round in the fall of 2020. Additional achievements, according to the company, include:

• Customer growth in North America: Exotec signed 8 new, large enterprise customers including Gap and Geodis and expanded its work with existing clients in new markets. Most recently the largest sporting retailer in the world, Decathlon, deployed the Skypod System in its Montreal fulfillment center following successful deployments in Europe.
• New technology to augment the flagship Skypod System: The company debuted its Skypicker technology, an articulated arm able to move 600 items per hour to support high-volume fulfillment and returns.
• Expanding global team: To date, Exotec employs more than 300 professionals around the world and aims to double its global headcount by 2023.
• In a separate statement commenting on the latest funding round by Exotec, market research firm Interact Analysis noted that Exotec is growing rapidly, as is the broader warehouse automation market. Interact Analysis estimates that Exotec’s 2021 revenue more than doubled in 2021 to hit €105 million. According to Ash Sharma, Interact’s managing director of research, it is “more than feasible” Exotec could double its revenue again in 2022 in the rapidly growing niche of goods-to-person automation solutions that feature high density storage and robotics to present bins to workstations.

“Exotec provides an innovative solution which enhances existing ‘goods-to-person’ robotic solutions [pioneered by Kiva Systems],” Sharma said. “The Exotec solution allows robots to both traverse in 3-dimensions within warehouse storage racking, but also then travel autonomously across the warehouse floor to deliver the goods to a packing station.”

Sharma added that Exotec plays in the GTP niche which sees warehouse robots bring individual bins to pickers instead of whole racks. This niche was worth just $270 million in 2021 but Interact Analysis predicts it will grow “incredibly quickly” to reach $3 billion in 2025.