Reliance-backed Addverb plans $100 million fundraise as it targets robotics growth

Addverb Technologies Ltd., a burgeoning robotics startup in India, is setting its sights on raising over $100 million to bolster its status as a premier manufacturer of robots in the country and to extend its reach into international markets. According to Chief Executive Officer Sangeet Kumar, the company is on the hunt for fresh capital following its growth in locations like the United States, the Netherlands, and Australia. Backed by Mukesh Ambani’s Reliance Industries Ltd., Addverb is also investing in innovative technologies, including humanoid and quadruped robots, as it gears up for a potential stock market debut in the coming years. Kumar expressed confidence in the prospects for Indian players in a sector traditionally dominated by larger competitors from China, Japan, and the US. "We aim to be among the top 10 companies in the next five years and top 5 in the next decade," he stated during an interview at one of Addverb's manufacturing facilities near New Delhi. The firm is currently positioned just outside the global top 30 in terms of robotics market share by revenue. This fundraising initiative marks Addverb's first significant capital effort since 2021, when it secured $132 million from Reliance, which now possesses a controlling interest in the company. The founders and employees together maintain ownership of approximately 20% of the firm. The new funding is primarily earmarked for the development of humanoid and quadruped robots, data collection, and the creation of artificial intelligence systems to enhance machine training. Currently, Addverb's robots are utilized for sorting, material movement, and various tasks in logistics, warehouses, and electronics manufacturing. Kumar believes that humanoid robots represent a substantial growth opportunity in a rapidly evolving market, with competitors like Unitree Robotics and Tesla's Optimus vying for dominance. Despite the advantages held by Chinese firms, including government subsidies, Kumar asserted that Indian companies can carve out competitive advantages by developing proprietary technology and minimizing reliance on imported components. In line with this strategy, Addverb plans to introduce lidar sensors soon, following over two years of development, to decrease dependence on foreign suppliers. Founded in 2016 as a warehouse automation venture by four engineers from Asian Paints Ltd., Addverb has since expanded into various sectors, including factory automation, electronics manufacturing, healthcare, defense, and research. Notable clients include Lenskart Solutions Ltd., Hindustan Unilever Ltd., and Reliance, among others in the retail and consumer goods sectors. Today, nearly half of Addverb's revenue comes from international markets, with a workforce of almost 1,100 spread across more than 24 countries. After experiencing losses during its global expansion over the past two years, the company anticipates a return to profitability on an adjusted basis in the fiscal year ending March 2027, with expectations for net profit in the following year. Kumar projected that revenue would hit 13 billion rupees (approximately $136 million) in the current fiscal year, buoyed by an order book worth about $200 million. While an initial public offering (IPO) remains a key consideration for scaling operations, the company currently has no immediate plans to go public. "At this stage, we believe we are too small for an IPO," Kumar noted. "We might consider it once we achieve revenues of over 40 billion to 50 billion rupees, which could happen within the next two years if our growth trajectory continues."