Series C round comes amid growing global demand and larger deployments of OTTO's proven AMR technology
KITCHENER, Ontario, June 1, 2020 /PRNewswire/ -- OTTO Motors, a division of Clearpath Robotics, today announced it has closed $29 million (USD) in Series C funding for the continued expansion of its autonomous mobile robot (AMR) platform. The investment, which follows years of rapid growth, was led by Kensington Private Equity Fund with participation from BMO Capital Partners, Export Development Canada (EDC), and previous investors iNovia Capital and RRE Ventures.
OTTO Motors enables the world's largest companies to create safer and more productive workplaces with autonomous material handling. This funding will be used to expand OTTO's global network of delivery partners and accelerate its product roadmap for enterprise customers with emphasis on its industry-leading autonomous technology.
Demand for AMRs has been growing worldwide as manufacturers have struggled to find workers to serve critical needs. The skills gap is projected to leave 2.4 million positions unfilled between 2018 and 2028, according to a 2018 study by Deloitte and The Manufacturing Institute, and the need for automation is projected to grow as companies seek ways to improve business continuity during and after the COVID-19 pandemic.
"Mobile robots are no longer a luxury in the workplace; they are a necessity," said Clearpath CEO and co-founder Matthew Rendall. "In a post-COVID world, AMRs enhance worker safety and bring resiliency to supply chains. As enterprises adapt, AMR demand will accelerate globally. This investment will enable us to grow to meet the evolving needs of the factories and warehouses of the future anywhere in the world."
"Clearpath and its OTTO autonomous mobile robots have been on our radar for some time. We see strong trends favouring the acceleration of industrial automation generally, with Clearpath positioned very strongly to benefit from this rapidly growing sector," said Rick Nathan, senior managing director at Kensington. "OTTO's technology leads the market for core infrastructure for the factory of the future. It is becoming increasingly important for customers across all manufacturing and a compelling opportunity for our investors."
OTTO has helped Berry Global Group, a Fortune 500 manufacturer, meet increasing customer demand despite labor shortages at a plant in Kentucky. Berry Global's fleet of 19 OTTO AMRs operate 24x7 supplying cases to and from automated production machines.
"Our mission to ensure a safe and productive work environment, along with the challenges of persistent labor constraints, has led us to increase investments in creative automation solutions," said Scott Spaeth, director of corporate automation at Berry Global. "The OTTO vehicles address those challenges and deliver improved operations reliability, while enhancing the working environment for our employees."
Since launching in 2015, OTTO Motors has emerged as a leader in enterprise AMR deployments. Over 70% of the AMRs installed by OTTO are in Fortune Global 500 companies, including GE, Toyota, Nestle, and Berry Global. In recent months, OTTO has also seen a surge in demand from essential businesses responding to increased operational risks associated with COVID-19, including food, beverage and medical device manufacturing.
Including this Series C round, OTTO Motors has now raised $83 million (USD) in funding.
About OTTO Motors
OTTO Motors is the industrial division of Clearpath Robotics. OTTO Motors provides autonomous mobile robots for material handling inside manufacturing facilities and warehouses. OTTO is trusted for mission-critical deliveries spanning the most demanding of industrial environments. Customers include some of the world's largest organizations, including GE, Toyota, Nestle, and Berry Global. For more information, visit www.ottomotors.com.
About Clearpath Robotics, Inc.
Founded in 2009, Clearpath Robotics established itself as a pioneer in autonomous robotics when it developed one of the world's first platforms for robotics research. Today, the Clearpath Robotics platform is used to support robotics innovation in mining, military, agriculture, aerospace, and academia. In 2015, the company established the OTTO Motors division to focus on the use of autonomous mobile robots for materials handling in warehouses and factories. Visit www.clearpathrobotics.com and www.ottomotors.com for more information.
SOURCE OTTO Motors