Ali Javaheri

Associate Analyst, EMERGING SPACE BRIEF

Warehouse Robotics
Emerging Technology
[email protected]

Originally published January 7, 2025

[email protected]

Trending companies Overview

Warehouse robotics refers to automated material handling and order fulfillment
systems that leverage artificial intelligence and machine learning to perform
operational tasks such as picking, sorting, and inventory management within
logistics facilities. These autonomous solutions transform traditional storage and
distribution operations by optimizing efficiency, reducing labor costs, and enhancing
throughput across e-commerce, retail, and manufacturing sectors.

Background
Warehouse robotics VC The mid-1900s marked a new era of industrialization, characterized by mass
deal activity production, digitalization, and computation. This shift gave rise to innovative
warehousing systems, including the development of the first Automated Storage
100
and Retrieval System (AS/RS) in the 1960s by Demag, now known as Dematic. This
82 technology revolutionized inventory storage and retrieval, laying the groundwork
71 for modern warehouse automation. Wal-Mart’s first distribution center, established
in the 1970s, introduced new efficiencies to supply chain management. Around the
54
45 same time, the use of barcodes for inventory tracking emerged, driving the need for
sophisticated software systems to manage increasingly intricate logistics. As supply
chains grew more globalized and distributed, these systems became indispensable.
$1,680.4
$1,248.6

$1,729.4

$460.0

$574.6

The advent of e-commerce platforms such as Amazon fundamentally altered

consumer expectations, particularly with the demand for rapid delivery. Amazon’s
2020 2021 2022 2023 2024 acquisition of Kiva Robotics in 2012 for $775 million underscored the necessity of
Deal value ($M) Deal count automated solutions to handle complex inventory management and fulfillment
processes efficiently.
Source: PitchBook • Geography: Global
As of December 23, 2024
The integration of Internet of Things systems further enhanced warehouse
operations, enabling real-time data collection and communication between
devices to optimize efficiency. These advancements proved critical during the
COVID-19 pandemic, which highlighted vulnerabilities in traditional supply chains
and accelerated the adoption of automation to address labor shortages and rising
e-commerce demands.

Labor shortages remain a key driver for warehouse robotics adoption, as the
For access to more of this data and
industry struggles with high turnover rates associated with repetitive and mundane
PitchBook’s Emerging Spaces tool,
tasks. According to Gartner, by 2027, more than 75% of companies are expected to
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incorporate some level of automation within their warehouse operations, reflecting
the growing emphasis on efficiency and resilience in supply chain management.

1
 Emerging Space Brief: Warehouse Robotics

Technologies and processes

Robotized storage and order-picking systems: Also known as automated storage
and retrieval systems or robotic cube systems (RCS), these integrated solutions
combine cyberphysical systems, mobile robots, and software to optimize how
goods are organized and retrieved in warehouses. Using storage grids, totes,
flexible robots, ergonomic picking stations, and AI-driven software, they deliver
agile, scalable, and efficient inventory management. Compared with conventional
material handling automation, RCS systems offer lower costs, faster deployment,
and adaptability for companies seeking modern, high-density solutions. Startups
such as Attabotics, Exotec, and Fabric are leveraging RCS to provide cutting-edge
alternatives that blend flexibility, safety, and scalability with the efficiency of
traditional automation.

Autonomous mobile robots (AMRs): These advanced robotic platforms are

designed to independently navigate and transport goods within warehouses, plants,
and distribution centers. Unlike traditional automated guided vehicles, which rely
on fixed pathways such as magnetic strips or floor sensors, AMRs use sensors,
cameras, and GPS systems to dynamically map their environment, reroute around
obstacles, and optimize tasks. They excel in transporting goods between stations,
assisting workers in order fulfillment and processing package information. Startups
such as Locus Robotics, Fetch Robotics (acquired by Zebra Technologies), and 6
River Systems (acquired by Shopify) are pioneering AMR solutions. Increasingly
accessible through models such as robots as a service, AMRs enable companies to
enhance productivity without large capital expenditures.

Mobile sortation robotics (MSR): These systems use flexible, mobile robots to
identify and transport goods from an induction point to designated destinations
within a warehouse. Equipped with AI-enabled software, MSR systems optimize
fleet operations, adapting to different payloads, dimensions, and sorting
requirements. Compared to traditional conveyor systems, MSR solutions are
cost-effective, scalable, and quick to deploy, making them ideal for high-volume,
fluctuating demand environments such as e-commerce and direct-to-consumer
fulfillment. Startups such as Plus One Robotics, Kindred, and Berkshire Grey are
driving innovation in this space, offering solutions that integrate robotic arms
for sorting, AI-powered identification, and seamless collaboration with human
operators.

Drones: Used in warehouses and distribution centers, drones streamline inventory

management and logistics. Equipped with advanced sensors, cameras, and AI-
powered navigation, drones autonomously perform tasks such as inventory
scanning, stock tracking, and cycle counting. They offer faster, more accurate, and
more efficient inventory management compared to traditional manual or ground-
based methods. Startups such as Verity are at the forefront of drone technology
for warehouses, integrating their solutions with warehouse management systems
to enhance real-time operations. By reducing downtime, minimizing errors, and
improving productivity, drones are transforming supply chain efficiency across
industries such as e-commerce, retail, and manufacturing.

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 Emerging Space Brief: Warehouse Robotics

Applications
Warehouse robotics are deployed across industries to address a variety of
operational needs. In e-commerce and retail, they enhance inventory management,
picking, and packing processes to meet rising consumer expectations for fast and
accurate deliveries. In manufacturing, robotics streamline material handling and
order fulfillment to ensure efficiency in production workflows. Third-party logistics
providers use robotics to optimize storage density and manage fluctuating demand.
Cold storage environments benefit from robotics that can operate efficiently
in extreme temperatures, reducing human exposure and improving inventory
accuracy. These systems enable businesses to reduce labor dependency, improve
throughput, and adapt to dynamic supply chain demands, demonstrating their
versatility and transformative potential.

Limitations
Despite their transformative potential, warehouse robotics come with several
challenges. Companies face significant obstacles in evaluating and selecting the
right systems for their specific needs. Technologies such as AMRs and RCS offer
distinct advantages but may require extensive customization to align with diverse
operational requirements, such as complex picking tasks or high-density storage.

Integrating heterogeneous robotic systems adds complexity, as orchestration

software is often necessary to ensure seamless operation across different
platforms. Additionally, spatial constraints, particularly with RCS, can limit vertical
storage or require significant floor space, posing challenges for densely packed
warehouses.

Cost remains a critical barrier. Warehouse robotics demand substantial upfront

investment in equipment and software along with ongoing expenses for
maintenance and upgrades. Justifying these costs requires a clear return-on-
investment framework, which is often difficult for companies to establish without
external expertise.

System reliability and performance also vary. For example, MSR systems may
struggle with operational downtime or coordination in bulk picking processes, while
drones face limitations in payload capacity and infrastructure compatibility in urban
environments. Furthermore, workforce adaptation is essential, as employees may
resist automation without effective training and transition plans.

Regulatory hurdles, including data security, safety, and environmental compliance,

further complicate deployments. Companies must allocate dedicated resources to
navigate evolving standards and ensure sustained compliance.

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 Emerging Space Brief: Warehouse Robotics

Recent deal activity and market outlook

Venture capital flowed steadily into warehouse robotics in late 2024 with several
notable investments: Pickle Robot secured $50 million in Series B funding in
November alongside orders for more than 30 robotic unloading systems for 2025
deployment. Dexory raised an $80 million Series B in October to advance its AMRs,
which automate warehouse data collection and inventory tracking. In July, Mytra
secured a $50 million Series B at a $145 million valuation for its three-dimensional
grid system that combines innovative racking structures with robots and AI
software for warehouse optimization.

These investments reflect the industry’s growth trajectory, which has been driven
by increasing demands for supply chain efficiency. Companies are turning to
robotics to combat labor shortages and handle rising order volumes. The sector
sees particular promise in startups developing collaborative robotics and AI-driven
solutions.

The industry is also characterized by increasing collaboration between startups and

established companies to integrate robotics into existing operations. This trend,
coupled with companies’ focus on supply chain resilience, suggests continued
growth in robotics adoption.

Quantitative perspective

261 846 1,212 $20.5B

companies deals investors capital invested

63 $8.0M $77.6M $601.8M

deals (TTM) median deal size median post-money capital invested
-8.7% YoY (TTM) valuation (TTM) (TTM)
0.5% YoY 26.7% YoY -33.6% YoY

As of December 23, 2024

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 Emerging Space Brief: Warehouse Robotics

Top VC-backed warehouse robotics companies by total raised

Total raised Last financing

Company Last financing date Last financing deal type HQ location Year founded
($M) value ($M)

Secondary transaction -
AutoStore $677.2 N/A February 15, 2024 Nedre Vats, Norway 1996
private

Geek+ $650.9 N/A December 16, 2024 IPO Beijing, China 2015

GreyOrange $589.5 $135.0 November 14, 2023 Late-stage VC Roswell, US 2012

Berkshire Grey $553.6 $375.0 July 20, 2023 M&A Bedford, US 2013

Exotec $445.8 $333.0 January 17, 2022 Late-stage VC Croix, France 2015

Locus Robotics $410.2 N/A November 1, 2024 Late-stage VC Wilmington, US 2014

ShipMonk $365.0 N/A October 1, 2022 PE growth/expansion Fort Lauderdale, US 2014

Mowito $336.3 $0.3 August 31, 2021 Seed Bengaluru, India 2019

Fabric $336.0 $200.0 September 24, 2021 Late-stage VC Tel Aviv, Israel 2015

Outrider $261.6 $62.5 October 24, 2024 Late-stage VC Brighton, US 2017

Source: PitchBook • Geography: Global • As of December 23, 2024

Top warehouse robotics companies by Exit Predictor Opportunity Score

Opportunity Success Total raised

Company M&A probability IPO probability HQ location Year founded
score probability ($M)

Gather AI 98 97% 96% 1% $34.0 Pittsburgh, US 2017

Floatic 97 88% 81% 7% $6.4 Seoul, South Korea 2021

SVT Robotics 97 92% 91% 1% $36.5 Norfolk, US 2018

Corvus Robotics 96 91% 90% 1% $28.2 Boston, US 2015

Xpand. 96 87% 78% 9% $25.0 Tel Aviv, Israel 2021

XSquare 91 82% 78% 4% $9.2 Singapore, Singapore 2019

Dexterity 90 96% 69% 27% $212.4 Redwood City, US 2017

LexxPluss 90 76% 65% 11% $18.2 Kawasaki, Japan 2020

Realtime Robotics 90 98% 90% 8% $107.2 Boston, US 2015

ROMS 90 81% 78% 3% $8.6 Tokyo, Japan 2019

Source: PitchBook • Geography: Global • As of December 23, 2024

Note: Probability data based on PitchBook VC Exit Predictor Methodology.

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 Emerging Space Brief: Warehouse Robotics

Top warehouse robotics companies by active patents

Company Active patent documents Total raised ($M) HQ location Year founded

Mitsubishi Logisnext 1,598 N/A Kyoto, Japan 1937

AutoStore 654 $677.2 Nedre Vats, Norway 1996

Berkshire Grey 597 $553.6 Bedford, US 2013

Boston Dynamics 562 $37.0 Waltham, US 1992

Opex 330 N/A Moorestown, US 1973

Hai Robotics 263 $184.5 Shenzhen, China 2015

Mecalux 191 $129.4 Barcelona, Spain 1966

Dexterity 132 $212.4 Redwood City, US 2017

Locus Robotics 112 $410.2 Wilmington, US 2014

Oxipital AI 99 $96.3 Bedford, US 2012

Source: PitchBook • Geography: Global • As of December 23, 2024

Top warehouse robotics investors

Investor Investments Primary investor type HQ location

Plug and Play Tech Center 33 Accelerator/incubator Sunnyvale, US

SOSV 12 VC Princeton, US

Source Code Capital 12 VC Beijing, China

Eclipse Ventures 11 VC Palo Alto, US

5Y Capital 10 VC Shanghai, China

HAX 10 VC San Francisco, US

Scale Venture Partners 10 VC Foster City, US

Toyota Ventures 10 CVC Los Altos, US

Prologis Ventures 9 CVC San Francisco, US

Koch Disruptive Technologies 8 VC Wichita, US

National Science Foundation 8 Government Alexandria, US

New Enterprise Associates 8 VC Menlo Park, US

Zebra Ventures 8 CVC Lincolnshire, US

Source: PitchBook • Geography: Global • As of December 23, 2024

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 Emerging Space Brief: Warehouse Robotics

Recommended reading
• “Getting Warehouse Automation Right,” McKinsey & Company, Alan Davies, et
al., December 1, 2023.

• “Research: Warehouse and Logistics Automation Works Better with

Human Partners,” Harvard Business Review, René de Koster and Debjit Roy,
June 21, 2024.

• “Review of Autonomous Mobile Robots for the Warehouse Environment,” arXiv.

org, Russell Keith and Hung Manh La, June 24, 2024.

• “Rise of Warehouse Robots Spurs Efficiencies—And Safety Concerns,” Forbes,

Rich Blake, November 24, 2023.

• “Robots Invade the Warehouse, and Workers are Welcoming Them,” The New
York Times, November 19, 2024.

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