Formic’s growing fleet of robotic equipment has reportedly completed 100,000 production hours at more than 99 percent uptime.
CHICAGO—Formic, a provider of robots-as-a-service (RaaS) automation for U.S. manufacturers, said in a release that it raised another $27.4 million in Series A financing, bringing its total Series A round to more than $52 million since January 2022.
The financing was led by Blackhorn Ventures, with participation from Mitsubishi HC Capital America, NEC, Translink Capital, Alumni Ventures, FJ Labs, Lux Capital, Initialized Capital, and Lorimer Ventures.
According to the release, Formic “delivers fully supported robotic automation at a low hourly rate.” This includes deploying the system and providing continuous monitoring and maintenance throughout the engagement to ensure success. In two-and-a half years, Formic’s growing fleet of robotic equipment is reported to have completed 100,000 production hours at more than 99 percent uptime. Another 100,000 hours are expected to be completed in the next 170 days.
With the new financing, Formic said it plans to expand its fleet of standardized equipment to provide more automation to more manufacturers. The company’s RaaS automation is reported to offer rapid deployment and shorter lead times. Formic said that approximately 75 percent of its customers are automating their material handling processes for the first time.
The company said it also plans to “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).” It also plans to enhance its equipment-agnostic robotic automation software, which leverages artificial intelligence (AI) for motion planning, predictive maintenance, and system design, as well as more intuitive customer interfaces and dashboards.
“Manufacturers continue to struggle with labor 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 Formic Co-founder and CEO Saman Farid, in the release. “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.”
According to Formic, an MIT report shows that only 10 percent of U.S. manufacturers leverage automation in their production facilities. Yet U.S. manufacturing will need as many as 3.8 million new employees by 2033, and 1.9 million of these jobs could go unfilled. Automation, therefore, becomes a must-have for manufacturers to thrive.
“We continue to invest in businesses and technology that will rapidly unlock manufacturing capacity and create resiliency in the U.S. supply chain,” said Melissa Cheong, partner at Blackhorn Ventures, in the release. “Working with Formic to augment front-line labor by democratizing access to automation is an actionable way for us to strengthen our industrial economy in real time.”
Formic said it also recently entered 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, described as “an all-encompassing managed solution for manufacturing automation.”
“Automation can help small- and mid-size manufacturers address labor 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, in the release. “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.”