Grey Orange robotic warehouse raised $140 million in Series-C

Tinuku - Artificial Intelligence-powered robotics company Grey Orange Pte. Ltd. has raised US$140 million in a Series-C round led by Mithril Capital, a venture firm cofounded by Ajay Royan and early Facebook investor Peter Thiel, with the valuation estimated to be US$500 million.

The other investors included Mitsubishi, Flipkart, Project Verte and Blume Ventures. Last year Japan’s largest conglomerate Mitsubishi was set to pick up a stake in GreyOrange, one of the rare hardware startups to come out of India.

Tinuku Grey Orange robotic warehouse raised $140 million in Series-C

The newest round saw both primary and secondary transactions, and will see Royan join the company’s board. Before this, GreyOrange had raised US$35 million. GreyOrange, founded by BITS-Pilani graduates Samay Kohli and Akash Gupta, produces up to 1,500 robots a month and has R&D centres in the US, China and India.

“We see Mithril as a strategic investor as there is an alignment with their core technology focus. The investment from Flipkart will strengthen our relationship,” GreyOrange CEO Kohli said.

Flipkart along with ecommerce platforms Myntra, Jabong and Pepperfry, besides logistics players such as Aramex, DTDC, Delhivery and Mahindra Tractors are some of GreyOrange’s customers in India.

The company’s overseas customers include Kerry Logistics (Hong Kong), Ninja Van (Singapore), Nitori, Trusco and Daiwa (Japan), Loggi (Brazil), and Pos Indonesia (Indonesia).

“We see the biggest demand from ecommerce and omnichannel, as well as fashion brands and retailers in apparel. The Indian market currently contributes 10% to the company’s global business while majority of the business comes from the US, Japan and Europe,” Kohli said.

The company will use the funds to expand its supply chain and manufacturing capacity and double down on R&D. GreyOrange recently opened its US headquarters in Atlanta and has hired Chris Barber from Honeywell Intelligrated to lead as regional CEO, North America.

The company’s main offerings are ‘Butler’, which helps in automated inventory storage and replenishment, picking and combining orders in fulfilment and distribution centres, and ‘Sorter’, which helps in sorting of orders in warehouses and distribution centres.

It routes packages based on weight, volume, destination or any predefined parameter. The company sees 60% of the revenue coming from repeat customers.

“As an entrepreneur myself, I have closely followed how Samay and Akash have built and grown GreyOrange to become an international technology company with customers across the world. I look forward to supporting and witnessing the new phase of their growth,” said Flipkart’s Binny Bansal said.