Formic, a provider of Robots-as-a-Service (RaaS) for US manufacturers, has announced that it has secured an additional US$27.4m (£21.6m) in Series A financing, which it intends to use to boost automation uptake across US industry.
This round, led by Blackhorn Ventures, saw participation from Mitsubishi HC Capital America, NEC, Translink Orchestrating Future Fund, Alumni Ventures, FJ Labs, Lux Capital, Initialised Capital and Lorimer Ventures.
The latest funding brings Formic’s total Series A round to more than $52m (£41m) since January 2022.
Formic offers fully supported robotic automation at a low hourly rate, handling deployment, monitoring and maintenance to improve industrial operations.
In two-and-a-half years, Formic’s robots have reportedly completed 100,000 production hours at more than 99% uptime, with another 100,000 hours anticipated in the next 170 days.
The new financing will help Formic expand its robotic fleet, enhance its support network and improve its AI-driven automation software, the company said in a statement.
“Manufacturers are facing labour shortages, and traditional robotic solutions are often too costly and complex,” said Saman Farid, co-founder and CEO of Formic.
Farid continued: “This funding allows us to simplify automation for more manufacturers, providing end-to-end support and driving productivity.”
A report from the Massachusetts Institute of Technology highlighted that only 10% of US manufacturers use automation, with a projected need for 3.8 million new employees by 2033, half of which may go unfilled.
Melissa Cheong, managing partner at Blackhorn Ventures, emphasised the importance of automation in strengthening the US supply chain in response to the funding round.
Formic also announced a joint commercial agreement with Mitsubishi HC Capital America to finance and support the lifecycle of its RaaS model, which the pair hopes will address the financial barriers to automation adoption.
