NoMagic Secures $44M Funding for AI Robotic Arms

Reshoring Industrial Capacity and the Rise of Robotics

Following decades of factory closures and outsourcing, regions such as the United States and Europe are actively working to revitalize their domestic industrial capabilities.

In this context, Nomagic, a rapidly expanding Polish startup specializing in robotic arms for logistics – including picking, packing, and material handling – has secured $44 million in funding. The company intends to allocate these funds to both technological advancements and business expansion, with a particular focus on entering the North American market.

The Significance of the Investment

This investment is noteworthy not only for its substantial amount but also for the identity of the investors and the broader shifts occurring within the industrial sector.

A fundamental challenge in rebuilding regional industrial competitiveness lies in addressing workforce changes. Many individuals previously employed in manufacturing and warehousing have transitioned to different occupations. Where this hasn't occurred, companies have often reduced staffing levels and increased automation to lower labor costs and enhance efficiency.

Technological progress also raises critical questions about the future role of humans in an increasingly automated world. Recent events, such as the controversy surrounding a Y Combinator startup’s AI-powered workplace monitoring system, highlight these concerns. The debate centers on whether such technologies represent a new form of exploitative labor practice.

While public outcry may not prevent the development of such technologies, it underscores the ongoing discussions and necessary adjustments required as automation becomes more prevalent.

Nomagic’s funding round can be interpreted as a reflection of this evolving landscape.

Government and Institutional Support

The Series B funding round is led by the venture capital arm of the European Bank for Reconstruction and Development (EBRD), a development bank supported by over 70 countries and two EU institutions.

The EBRD’s participation demonstrates a concerted effort by governments and their institutions to stimulate private sector growth and support the rebuilding of industry. Robotics and advanced technologies are viewed as key enablers for enhancing Europe’s industrial competitiveness.

“Nomagic’s proven track record in deploying advanced AI and robotics technologies, combined with its impressive growth trajectory, positions it as a leader in the warehouse automation revolution,” stated Bruno Lusic of the EBRD. “We’re excited to support the company as it continues to break new ground in this dynamic industry.”

In addition to the EBRD, existing investors Khosla Ventures and Almaz Capital are also participating in this funding round. Furthermore, the European Investment Bank (EIB) is providing venture debt, its typical investment approach.

According to PitchBook data, Nomagic had previously raised approximately $30 million (excluding EIB debt). While the startup and its investors have not disclosed a specific valuation, Khosla partner Kanu Gulati confirmed that this round represents an increase in the company’s valuation.

Nomagic’s Approach to Robotics

A distinguishing feature of Nomagic’s robotic arms is that they do not rely on groundbreaking hardware innovations.

“Most of our hardware is off the shelf,” explained CEO Kacper Nowicki, who co-founded the company with Marek Cygan (CTO) and Tristan d’Orgeval (CSO).

Instead, the company’s focus is on software development. Utilizing computer vision, machine learning, and other automation techniques, Nomagic has created a “library” of object recognition and manipulation protocols.

The robots, powered by Nomagic’s AI, can perform a wide variety of tasks and are easily redeployed as needed. This contrasts with traditional robotic arm systems, as noted by d’Orgeval, who also pointed out the company’s deliberate decision to avoid humanoid robot designs, favoring wheeled platforms for industrial environments.

Nomagic reports a 220% increase in annual recurring revenue over the past year and projects another 200% growth this year, driven by demand from customers in sectors like e-commerce and pharmaceuticals.

Current customers include Apo.com, Arvato, Asos, Brack, Fiege, Komplett, and Vetlog.one.

Competitive Landscape

Covariant, a competitor to Nomagic, was recently the subject of an acqui-hire by Amazon.

The e-commerce giant, a significant investor in robotics for its own warehouses, hired Covariant’s founders and established a major licensing agreement with the startup in July 2024. While not a full acquisition, Covariant continues to operate independently. Covariant was last valued at approximately $625 million in 2022, providing a potential benchmark for Nomagic’s valuation.

“Amazon ‘acquired’ because it’s a hard problem to solve, and they couldn’t solve it,” said Khosla partner Gulati. “And that is Amazon. It shows that there is a huge opportunity for a company like Nomagic worldwide.”

The Broader Trend

Companies like Nomagic, Covariant, Berkshire Grey, and RightHand Robotics are developing robotics technologies at a time of increasing adoption in industrial settings.

Major players such as Nvidia and SoftBank (which acquired Berkshire Grey in 2023) have recognized the market opportunity, fueled by both the upgrading of existing equipment and the creation of new manufacturing and logistics facilities.

Government support is a crucial element of this trend, with the U.K., the European Union, the U.S., and other regions increasing investment in industry.