A Chicago startup that offers robots on demand to manufacturers has raised new funding to help more businesses with automation.
Formic Technologies said Tuesday that it has raised $26.5 million in a Series A equity round led by Lux Capital.
Other backers include Initialized Capital, Correlation Ventures, Lorimer Ventures and One Planet VC. The startup also raised $100 million in debt, which it's using to fund equipment purchases, the company said.
The new capital values Formic at more than $100 million, the company said.
Founded in 2020, Formic lets manufacturers rent robots by the hour. Offering “robotics-as-a-service,” the startup provides customized robotics solutions to help companies automate their processes.
Its customers include Polar Manufacturing, a manufacturer of springs, hinges and other hardware for doors and truck bodies, and Georgia Nut, a 75-year-old confections and nuts maker. The startup primarily works with small- and mid-sized American manufacturers.
Formic is led by CEO and co-founder Saman Farid, the founding partner of VC fund Baidu Ventures and the founder of robotics startup Comet Labs.
The startup sources equipment from robotic vendors like Universal Robots, FANUC, KUKA and ABB. Formic handles the programming, installation and maintenance of the machines, the company says, and gives firms a better way to access technology that can help their business, Farid said in a statement.
"We came to the conclusion that what manufacturers needed was not any specific new technology, but a better way to access the technology that would best meet their needs,” he said.
