Locus Robotics Secures $150 Million in Series E Funding

Locus Robotics, headquartered in Massachusetts, has announced the completion of a $150 million Series E funding round. This investment, primarily driven by Tiger Global Management and Bond, elevates the company’s total funding to approximately $250 million and establishes a valuation of $1 billion.

A Flexible Approach to Warehouse Automation

Locus Robotics distinguishes itself through a highly modular and adaptable approach to warehouse automation, differing from many competitors like Berkshire Grey. The company provides organizations with robotic fleets on a lease basis, facilitating logistics automation.

CEO Rick Faulk explained to TechCrunch that their system allows for modifications even during operation. “We can change the wings on the plane while it’s flying,” he stated, emphasizing a level of flexibility unmatched by others in the industry.

Demand for Adaptable Automation Solutions

Companies are increasingly seeking automation solutions that don’t require permanent infrastructure. Faulk highlights that businesses, particularly third-party logistics providers with shorter-term contracts, are hesitant to invest heavily in fixed automation systems. A significant upfront investment of $25-$50 million and the resulting inflexibility are major deterrents.

Current Deployment and Expansion Plans

Currently, Locus Robotics has deployed around 4,000 robots across 80 different locations. The majority of these deployments, approximately 80%, are situated within the United States. The remaining 20% are located in Europe.

A substantial portion of this new funding will be allocated to expanding international operations. This includes a strengthened presence in the European Union and a strategic entry into the Asia-Pacific (APAC) region, where the company currently has limited operations.

Investment in Growth and Innovation

Beyond international expansion, the company intends to invest heavily in research and development (R&D), as well as sales and marketing initiatives. Locus Robotics plans to increase its current workforce of 165 employees by an additional 75 positions in the coming year.

The Impact of the Pandemic

The recent surge in demand for automation is directly linked to the impact of the COVID-19 pandemic. More companies are turning to robotics to address the challenges of increased online ordering.

Faulk notes that the pandemic has accelerated the growth of e-commerce by an estimated four to five years. Prior to COVID-19, e-commerce accounted for roughly 11% of total retail sales, but this figure jumped to 16-17% during the pandemic. He believes this shift is permanent.

Remaining Independent

The funding round suggests that Locus Robotics is committed to maintaining its independence, unlike Kiva Systems, which was ultimately acquired by Amazon and transformed into Amazon Robotics.

“We have no interest in being acquired,” Faulk affirmed. “We believe we can maximize value by remaining an independent entity. There are investors eager to support companies competing with Amazon.”