Plus One Robotics Raises $50 Million in Funding, Led by Scale Venture Partners, to Capitalize on $128 Billion Market Opportunity
This expansion builds on Plus One Robotics’ existing relationships with customers in the parcel post, logistics, and general merchandise industries, serving customers that include FedEx, MSC Industrial, and many more.
San Antonio, Texas, March 7, 2023 — Plus One Robotics, a provider of advanced AI vision software and solutions for robotic parcel handling, today announced that it has raised $50M in Series C funding. The round was led by Scale Venture Partners, with Partner Rory O'Driscoll joining the board of directors. Top Tier Capital Partners, Tyche Partners, ROBO Global Ventures, Translink, McRock, and Pritzker Group Venture Capital also participated in the round alongside existing investors, which brings the company's total funding to date to nearly $100 million. Plus One's technology helps to alleviate the persistent shortage of manual labor through robotic solutions, dramatically streamlining the parcel picking and depalletizing processes. Plus One deployments perform over one million parcel picks each day in production and currently hold an industry-leading metric of more than half a billion parcel picks globally. With these new funds, Plus One can further increase its capacity and rapidly scale deployment, as well as expand its sales and marketing efforts in North America and internationally.
This expansion builds on Plus One Robotics' existing relationships with customers in the parcel post, logistics, and general merchandise industries, serving customers that include FedEx, MSC Industrial, and many more.
The Labor Problem
"The labor shortage is hitting the shipping industry hard, and parcel picking is an often overlooked yet essential part of the process," said Scale Partner Rory O'Driscoll. "By automating the parcel handling piece, Plus One Robotics is rapidly modernizing an outdated system that's no longer sustainable. It is stepping up and leading the way in a $128 billion market, with fundamentals that prove its value."
E-commerce has grown to represent 19% of U.S. retail sales, with approximately 20 billion parcels delivered in the U.S. in 2021. Shipping growth is expected to rise by 25% over the next five years resulting in warehouses and distribution centers not having the workforce to keep up.
On the supply side, over 80% of warehouses are manual, and with the demands placed on shipping expected to grow, there will be over 1 million more jobs to fill by 2025 despite the shrinking of available labor sources - and costs are rising. Labor costs average $25 per hour and continue to increase. This creates a perfect storm threatening the supply chain and impeding future e-commerce growth.
"The growth of e-commerce has placed tremendous pressure on shipping responsiveness and scalability that has significantly exacerbated labor and capacity issues," said Erik Nieves, CEO and co-founder of Plus One Robotics. "Automation is key, but keeping a human-in-the-loop is essential to running a business 24/7 with greater speed and fewer errors. With the ongoing labor shortages, I believe we'll see an increase in the adoption of Robots-as-a-Service (RaaS) to lower capital expenditures and deploy automation on a subscription basis. This new funding will help us scale up and meet the need for these solutions."
Plus One Robotics' solutions employ award-winning AI-powered software with unique end-of-arm robot grippers that provide the perception and manipulation necessary to pick and place parcels. Key to Plus One Robotics' effectiveness is its unparalleled approach to human-in-the-loop software. Employees, remote or on-premises, can supervise multiple robots from any location, speeding the robot's ability to handle exceptions, enabling 24/7 operations. Users benefit from improved sorting and picking throughput by >30% while decreasing operational costs.
Plus One has experienced nearly three-times year-over-year growth from expanded business with existing customers and new deployments. Additionally, it has increased its adoption of the human-in-the-loop capability and RaaS offering among its parcel and post, third-party logistics (3PL), and general merchandise customers.
Plus One deployments perform over one million parcel picks each day in production and currently hold an industry-leading metric of more than half a billion parcel picks globally.
About Plus One Robotics
Plus One Robotics provides the industry's fastest and most reliable parcel-handling robotics platform. Founded in 2016 by computer vision and robotics industry experts, Plus One's intelligent solutions combine computer vision, AI, and supervised autonomy to pick parcels for leading logistics and e-commerce organizations in the Global 100. Plus One is headquartered in San Antonio with offices in Boulder, Pittsburgh, and The Netherlands. Visit www.plusonerobotics.com for more information, and follow us on LinkedIn, Twitter, YouTube, and Facebook.
About Scale Venture Partners
Scale is a Silicon Valley-based early-stage venture capital firm that help software companies move from founder-led sales to go-to-market machines. Scale focuses on enterprise intelligent applications that transform B2B work, and we were early investors in SaaS pioneers like Box, DocuSign, HubSpot, RingCentral, and Bill.com. We continue that tradition with investments in best-in-class business software from companies like JFrog, WalkMe, CircleCI, Motive, and BigID. Our Scale Studio platform leverages an unrivaled dataset of 1000+ successful startups to give founders benchmarks on their company's "Vital Signs" -- the growth and operating metrics that matter most. Learn more about our people, portfolio, and perspectives at www.scalevp.com.