Deus Robotics, a Ukrainian startup specializing in warehouse robotics engineering and software development, announced this week that it has raised $1.5 million in seed funding from SMRK VC, a leading Ukrainian venture fund, at an undisclosed valuation. The company has a valuation of $15 million, according to investors.
The investment will help the company attract new customers in the US and Europe and expand its line of robotic warehouse solutions, it said.
Deus Robotics was established in 2018 with the aim of changing business processes, assuring faster and better results. The company said it dedicated to solving tasks for fulfillment and sorting ops across different industries, including logistics and e-commerce.
It said it specializes in full-cycle projects, including hardware engineering, software development, and integration, focusing on automating warehouse and logistics operations. Its robots can perform various tasks, such sorting by direction and moving shelves, which are used in pre-sorting tasks, consolidation, and order picking.
The global logistics industry is ripe for innovation, and Deus Robotics said its vision for the future is clear. In the U.S. alone, some 1.5 million workers are employed in the warehouse and storage sector, and the recent analysis from Accenture found that overall, sentiment towards automation was 60% positive.
“Deus Robotics is at the forefront of revolutionizing the warehouse industry with innovative solutions that improve the efficiency of logistics operations,” said Pavlo Pikulin, the CEO of Deus Robotics.
SMRK is a Ukrainian VC founded in 2013 focusing on Seed through Series B stages. It provides $500K - $1.5M checks to startups with a clear connection to Ukraine and a high potential to bring positive economic, social, and environmental impact.
Desus Robotics issued 40 parcel-sorting robots as part of pilot
Prior to the investment, Deus Robotics successfully completed one of its biggest pilot projects. The startup produced over 40 robots for parcel sorting and rack transportation for Ukraine's largest private postal operator, Nova Poshta.
The pilot project was planned to launch in a Nova Poshta office in Bila Tserkva, near the capital city of Kyiv. However, the full-scale Russian invasion disrupted the plans, and the company had to temporarily evacuate its equipment and team to Mukachevo, in the Western region of Zakarpattia.
Working under unprecedented conditions and during regular blackout, Deus Robotics was able to build a system capable of sustaining network and power outages.
Deus Robots returned to Kyiv in May after the military defeated the Russians near the capital.
Despite the ongoing war, Deus Robots finalized the software and completed the Nova Poshta integration in Bila Tserkva. It increased the peak speed of parcel processing by 200%, compared to manual warehouse operations.
“Our dedication to the mission and the hard work of our team allowed us to overcome the difficulties and continue to expand our business despite the challenging conditions,” said Pikulin. “We believe in the potential of our technology to change the reality of the warehouse industry and are committed to delivering top-notch solutions to our clients.”
The logistics robotics market is worth $7.5 billion USD and is expected to grow 40 times by 2042. With this new round of funding, Deus Robotics plans to dedicate more resources to address customers need in specialized integrations and invest in R&D capabilities.
Deus to open sales office in U.S.
On the YoY basis, the team has already grown by 25%, and the company has seen a five-fold increase in orders for its robots. During the next stage Deus Robotics plans to scale manufacturing and is opening a sales office in the USA.
Several high-profile partnership agreements with leading logistics and e-commerce companies have already been signed.
“Deus Robotics' ability to adapt and thrive in difficult circumstances is a proof of the company's strong leadership and innovative technology. As the company continues to expand and secure partnerships with clients in Europe and the USA, it's clear that Deus Robotics is poised to make a significant impact on the logistics industry”, said Vlad Tislenko, partner at SMRK VC.