Tiger Global's Robotic & AI Investments - A Bullish Strategy

Tiger Global's Increased Investment in Robotics

On Tuesday, Tiger Global spearheaded two significant funding initiatives, participating in a $26 million Series A round for Ambi and a further $50 million investment in Locus Robotics.

The firm’s recent investment activity has been substantial. However, neither of these rounds were highlighted as “Today’s Tiger round” in our daily newsletter, a distinction that went to a $150 million funding for Indonesian fintech firm Xendit.

A Bullish Outlook on Robotics

Tiger Global demonstrates a strong belief in the potential of the robotics sector. Recent investments include $36.7 million for Rapid Robotics and $100 million for Path, both representing Series B funding.

These funding rounds are noteworthy within the robotics industry and showcase the breadth of applications falling under the robotics umbrella. Ambi and Locus focus on logistics and fulfillment, while Path and Rapid address construction and manufacturing, respectively.

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The diversification of interest in this field is evident. Industries across the board likely experienced enough disruption during the pandemic to accelerate their adoption of automation technologies.

The Appeal of Warehouse Automation

The warehouse and fulfillment segment is receiving particular attention. Beyond the general pressures brought on by the pandemic, companies are actively seeking ways to effectively compete with Amazon.

Amazon currently holds a dominant position in these areas and gained a significant advantage through early investments in automation via strategic acquisitions. Any competitive edge is crucial, and companies like Locus are striving to achieve this.

Locus Robotics secured $150 million in funding in February, with Tiger Global as a co-lead investor. This week, the firm further bolstered its position with an additional $50 million investment.

Locus’s approach offers greater adaptability compared to solutions requiring complete infrastructure overhauls. This flexibility, along with its pricing and implementation timeframe, is attractive to organizations needing scalable robotic assistance, particularly through its robotics-as-a-service model.

Ambi Robotics Gains Traction

Ambi, initially featured in a previous column, specializes in robots designed for pick and place and sorting tasks. The company emerged from stealth mode in April and is already experiencing strong market acceptance.

According to CEO Jim Liefer, “Ambi Robotics integrates advanced AI with intuitive user interfaces to redefine the role of item handlers as robot handlers.” He further stated that the Series A funding will enable the company to empower more businesses to facilitate harmonious collaboration between employees and robots.

Further Developments in Robotic Systems

Berkshire Grey unveiled its Robotic Pick and Pack (RPP) system this week, intended for automated packing of goods into shipping containers. The system is currently operational at SoftBank Logistics’ primary facility in Ichikawa, Japan.

COO Steve Johnson commented on the new system.

Boston Dynamics Enhances Spot's Capabilities

Boston Dynamics announced an update for its Spot robot, introducing enhanced autonomous functionalities. The Spot Release 3.0 update is specifically designed to improve the robot’s data collection abilities, as stated by Boston Dynamics.