Exotec Raises $335M to Eliminate Human Error

French startup, Exotec is on a quest to eliminate human errors in the supply chain department

Exotec has raised total funding of $335 million in Series D to raise the company valuation to $2 billion. The project is led by Goldman Sachs’ Growth Equity to partially automate the logistics of a regular warehouse. Also, the company plans on providing an end-to-end hardware and software solution to replace human errors. 

The pandemic has put huge pressure on the global supply chain. This has led companies to diversify their options. Many are exploring automated alternatives to keep their services up with customer demand. Furthermore, the CEO of Exotec, Romain Moulin says it can “improve supply chain resilience.” 

Since COVID-19, a lot of warehouses have faced logistics challenges. This is because of the Great Resignation that led to labour shortages. There are no suitable candidates for the vacant positions. So, it has encouraged companies to allow partial or complete automation to reduce the burden. 

Before the pandemic, retailers and their warehouses would hire seasonal workers to operate machinery. This was a workable solution to accommodate for peak time periods. But it is not possible anymore because adding workers is not going to solve the problem. 

The French startup, Exotec, was founded by Lille back in 2015. The organization aimed to create autonomous industrial robots known as Skypods. So, These bots can move vertically and horizontally to reduce the need for human labour. 

It can cater to improving productivity and alleviating physical exertion by workers. 

Who has Invested in Exotec’s Robotic Warehouse?

A lot of investors are interested in replacing human effort. Here is a list of interested companies who invested in Exotec’s automated logistic platform:

  • 83North
  • Dell Technologies Capital
  • Bpifrance
  • Iris Capital
  • 360 Capital Partners
  • Breega

What are Skypods?

Exotec systems have developed low-profile robots to carry out tasks. They are known as Skypods. These automated bots roam on the floor to clear pathways and organize the inventory. This can increase any warehouse’s storage facilities. 

The Skypods may carry the bins to a picking station operated by workers. The employees can take control of what goes where. Then, the bot can go to the racks and organize according to instructions. It removes the need to do the heavy lifting by humans. And you no longer need anyone’s supervision to roam around the warehouse.

Exotec has tried to be as flexible as possible when creating something new and out of the box. This is because you can customize the shelves, racks, products, and number of Skypods according to your needs. There is no need to start from scratch to expand your infrastructure. 

Exotec Offers an Alternative Solution

Exotec has offered an alternative solution to all your logistics workforce challenges. They believe their robotics systems can improve operational efficiency. This is because it eliminates the need to perform repetitive, labour-intensive tasks. It can include lifting and tracking orders. 

Exotec aims to run a warehouse that can operate efficiently with a combination of a robotic system and human effort. They don’t plan on disrupting or replacing the current work models. Instead, they want to introduce innovation in the logistics department. 

Most importantly, it can reduce the demand for labour in the market. Let us know your thoughts about the startup’s initiative.

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