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

      TL;DR Addverb Technologies, backed by Ambani, is aiming to raise over $100 million for developing humanoid and quadruped robots and AI training systems. The Indian enterprise is currently not among the global top 30 and has not yet reported a net profit, with revenue expected to reach $136 million this year.

      Addverb Technologies, the robotics startup owned by Mukesh Ambani’s Reliance Industries, is looking to secure more than $100 million to support the development of humanoid and quadruped robots, as well as the creation of AI systems for their training. CEO Sangeet Kumar informed Bloomberg that this fundraising effort marks the company’s first major initiative since Reliance’s $132 million investment in 2021.

      The company produces robots for sorting, material handling, and factory automation for logistics companies, warehouses, and electronics manufacturers. It operates in over two dozen countries, with half of its revenue originating from international markets.

      The goal

      Kumar stated, “We aim to be in the top 10 in the next five years and in the top five in the next decade.” Addverb currently estimates its position just outside the global top 30 regarding robotics market share by revenue.

      This gap is significant. 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 firms with decades of manufacturing expertise.

      Fund utilization

      The $100 million will finance the development of humanoid and quadruped robots, data collection efforts, and AI training systems. Additionally, Addverb intends to introduce proprietary lidar sensors after over two years of development, aiming to lessen reliance on imported parts.

      This push for proprietary technology is strategic. Chinese competitors benefit from governmental support and a robust manufacturing supply chain that Indian firms cannot yet equal. Addverb is banking on vertical integration and domestic intellectual property to balance the cost disadvantage.

      Financial outlook

      For the current fiscal year, revenue is projected to reach 13 billion rupees ($136 million), backed by an order book of about $200 million. The company has experienced losses during its international expansion but anticipates returning to adjusted profitability by the fiscal year ending March 2027 and net profitability the following year.

      Kumar mentioned that an IPO is a potential avenue for growth, but Addverb has no immediate plans in that regard. “We are likely looking at an IPO when we surpass 40 billion or 50 billion rupees in revenue,” he stated, a target he believes could be achieved within two years at the current growth rate.

      Background

      Addverb was established in 2016 by four engineers with prior experience at Asian Paints, the largest paint company in India. Its asset-heavy model struggled to attract venture capital, though an early investment came from a backer of Asian Paints.

      Among its customers are Lenskart, Hindustan Unilever, and Reliance, and the company has nearly 1,100 employees. Reliance maintains a controlling interest, while the founders and employees hold roughly 20%.

      Cautions

      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 figures provided by the company and have not been independently verified.

      The humanoid robot sector that Addverb is entering is competitive and requires substantial capital. It remains uncertain whether an Indian startup can effectively compete against the cost structure of Chinese firms, the manufacturing precision of Japanese companies, and the brand power and capital of Tesla. Being outside the top 30 indicates that Addverb would need to grow approximately five times just to meet the lower end of its five-year goal, a challenging target for a company that has yet to report a net profit.