Addverb Technologies Ltd., an Indian robotics startup supported by Reliance Industries, is embarking on a mission to raise more than $100 million. This significant fundraise is aimed at accelerating the company's global expansion and driving the development of next-generation humanoid and quadruped robots.
Chief Executive Officer Sangeet Kumar outlined ambitious goals, stating, "We want to be in the top 10 in the next 5 years and top 5 in the next 10 years." Currently, Addverb estimates its global robotics market share places it just outside the top 30 by revenue. The fresh capital will be crucial for building proprietary technology, reducing reliance on imported components, and positioning the company for a potential initial public offering (IPO) in the coming years.
Expanding Horizons and Advanced Robotics
The strategic investment will primarily fund research and development into new product lines, specifically humanoid and quadruped robots. Addverb also plans to invest heavily in data collection and the creation of sophisticated artificial intelligence systems necessary to train these advanced machines. Currently, Addverb's robots are deployed in logistics, warehouses, and electronics manufacturing, handling tasks such as sorting and material movement.
Kumar highlighted the immense growth potential in the humanoid robotics market, where companies like Unitree Robotics and Tesla's Optimus are actively competing. Addverb believes an Indian player can carve out a significant niche despite the head start of international rivals.
Strategic Independence Through Proprietary Technology
A key focus for Addverb is to enhance competitiveness by developing proprietary technology and lessening dependence on overseas suppliers. As part of this initiative, the company is preparing to launch its own lidar sensors, a product of over two years of in-house development. This move is expected to significantly reduce reliance on imported parts.
Company Background and Financial Outlook
Founded in 2016 by four engineers who previously worked at Asian Paints Ltd., Addverb began as a warehouse automation company. Its asset-heavy business model initially deterred venture capital, but it secured early investment from one of Asian Paints' backers. In 2021, Reliance Industries provided a substantial $132 million investment, acquiring a controlling stake in the firm, with founders and employees retaining about a fifth of the company.
Addverb has since expanded its reach into factory automation, electronics manufacturing, healthcare, defense, and research applications. Its impressive client roster includes Lenskart Solutions Ltd., Hindustan Unilever Ltd., and Reliance itself. The company now generates half of its revenue from outside India and employs nearly 1,100 people across more than two dozen countries.
After incurring losses during its international expansion over the past two years, Addverb is projected to achieve adjusted profitability in the fiscal year ending March 2027, with net profit anticipated in the subsequent year. Kumar forecasts revenue to reach $136 million in the current fiscal year, supported by an order book of approximately $200 million. While an IPO remains a long-term goal for scaling, Kumar stated that the company is currently "too small" for a public listing, targeting a revenue milestone of 40-50 billion rupees (approximately $479-599 million) before pursuing an IPO, a target he believes could be reached within two years at the current growth rate.