Addverb, backed by Ambani, is looking to raise $100 million to enhance its robotics efforts in India.

      TL;DR

      Addverb Technologies, backed by Ambani, aims to raise over $100 million to develop humanoid and quadruped robots, as well as AI training systems. The Indian company does not rank among the top 30 globally and has not yet reported a net profit, though it expects revenue of $136 million this year.

      Addverb Technologies, the Indian robotics startup owned by Mukesh Ambani’s Reliance Industries, is looking to secure more than $100 million for the creation of humanoid and quadruped robots, along with AI training systems. CEO Sangeet Kumar informed Bloomberg that this funding round marks the company's first significant financial effort since Reliance invested $132 million in 2021.

      The company currently produces robots for sorting, material handling, and factory automation for logistics, warehouses, and electronics sectors. It operates in over 25 countries, with about half of its revenue generated outside of India.

      The ambition

      Kumar expressed a desire to rank among the top 10 robotics firms in the next five years and top five in the next decade. Addverb believes it currently sits just outside the global top 30 in terms of market share by revenue.

      The gap is substantial. Companies ahead of Addverb include Unitree Robotics, preparing for a $7 billion IPO, Tesla’s Optimus program, and well-established Japanese and European industrial robotics companies with extensive manufacturing capabilities.

      What the funding is for

      The funds will be allocated towards developing humanoid and quadruped robots, data collection, and AI training systems. Additionally, Addverb intends to introduce proprietary lidar sensors after more than two years of development to lessen reliance on imported components.

      This focus on proprietary technology is strategic. Chinese competitors enjoy government subsidies and a robust manufacturing supply chain that Indian companies are not yet able to replicate. Addverb is betting that vertical integration and domestic intellectual property can mitigate the cost disadvantage.

      The financials

      Revenue for this fiscal year is projected to reach 13 billion rupees ($136 million), supported by an order book valued at approximately $200 million. Although the company experienced losses during its international expansion, it anticipates achieving adjusted profitability by the fiscal year ending March 2027 and net profit the following year.

      Kumar indicated that an IPO is a crucial option for scaling but there are no immediate plans for one. “We would likely consider an IPO when we reach revenues of more than 40 billion or 50 billion rupees,” he noted, believing this milestone could be achieved within two years at current growth rates.

      The backstory

      Founded in 2016 by four engineers who had previously worked at Asian Paints, India’s largest paint company, Addverb struggled to attract venture capital due to its asset-heavy model, but it did receive early investment from an Asian Paints backer.

      Its clients now include Lenskart, Hindustan Unilever, and Reliance. The company employs nearly 1,100 staff members. Reliance holds a controlling interest, while the founders and employees own about 20%.

      The flags

      Addverb has not revealed its current valuation or the specifics of the $100 million fundraising effort. The projected revenue of $136 million and the $200 million order book are based on figures provided by the company and have not been independently verified.

      The humanoid robot market Addverb is entering is competitive and requires significant capital. It remains uncertain whether an Indian startup can effectively compete against Chinese firms’ cost structures, Japanese firms’ manufacturing accuracy, and Tesla’s branding and resources. The company’s current position outside the top 30 implies it must grow approximately fivefold just to reach the lower end of its five-year target, an ambitious goal for a company yet to report a net profit.