Formic, a provider of robots-as-a-service (RaaS) automation for U.S. manufacturers, has raised another $27.4 million in Series A financing 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. This new funding brings the total Series A round to more than $52 million since January 2022.
With the new financing, Formic plans to:
- Expand its fleet of standardized equipment to provide more automation to more manufacturers
- Increase its network of support experts across the U.S.
- Enhance its equipment-agnostic robotic automation software
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“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,” Saman Farid, co-founder and CEO of Formic, said. “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.”
“We continue to invest in businesses and technology that will rapidly unlock manufacturing capacity and create resiliency in the U.S. supply chain,” Melissa Cheong, partner of Blackhorn Ventures, said. “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 also entered a joint commercial agreement with Mitsubishi HC Capital and Mitsubishi HC Capital America. The two companies will collaborate to source and finance the entire lifecycle of Formic’s RaaS model.
“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,” Jim Freund, president of vendor solutions at Mitsubishi HC Capital America, said. “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.”
