Manufacturing AUTOMATION

Formic raises $27.4M to expand its fleet and increase support network

July 2, 2024
By Sukanya Ray Ghosh

Formic, a provider of Robots-as-a-Service (RaaS) automation, has raised another $27.4 million in Series A financing. This new funding brings the total Series A round to more than $52 million since January 2022.
Formic offers fully supported robotic automation at a low hourly rate, including deploying the system and providing continuous monitoring and maintenance throughout the engagement to ensure success. In 2.5 years, Formic’s growing fleet of robotic equipment has reportedly completed 100,000 production hours with another 100,000 hours expected in the next 170 days.
With the new financing, Formic plans to:
  • Expand its fleet of standardized equipment to provide more automation to more manufacturers, offering rapid deployment and shorter lead times (75 percent of Formic customers are automating their material handling processes for the first time);
  • Enhance its equipment-agnostic robotic automation software that leverages artificial intelligence (AI) for motion planning, predictive maintenance and system design, as well as more intuitive customer interfaces and dashboards;
  • Increase its network of support experts across the U.S., enabling even faster customer response while continuing to uphold industry-leading maintenance service level agreements (SLAs).

“Manufacturers continue to struggle with labour challenges, yet robotic solutions that can automate these difficult-to-fill jobs are traditionally capital intensive and even intimidating for those without a specialist on hand to manage the project long term,” said Saman Farid, co-founder and CEO of Formic. “With this additional financing, we can take on the heavy lifting for even more manufacturers, handling financing, deployment, management and support throughout the entire lifecycle. It’s all about simplicity and standardization that enables better productivity outcomes for customers.”

Formic today also announced a joint commercial agreement with Mitsubishi HC Capital and U.S.-based Group Company Mitsubishi HC Capital America. The two companies will collaborate to source and finance the entire lifecycle of Formic’s RaaS model, an all-encompassing managed solution for manufacturing automation.
“Automation can help small- and mid-size manufacturers address labour shortages, control costs, improve safety and drive growth. However, financing is often a barrier to adoption,” said Jim Freund, president of Vendor Solutions, Mitsubishi HC Capital America. “With Formic’s innovative solution and our ability to finance it, businesses can rethink their entire manufacturing model, from their human capital needs to equipment requirements.”

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