Robotic delivery startup Kiwibot gears up for expansion, thanks to securing $10 million in financing from Swiss-based asset financing group Kineo Finance.
In an interview with Food On Demand, Kiwibot founder and CEO Felipe Chávez, said the partnership will “take operations to the next level” and directly go towards the manufacturing of approximately 1,400 robots—growing its fleet to over 2,000.
“We’re pleased to be backed by companies who believe in building accessible and convenient robotics services,” said Chávez. “This allows us to have a guaranteed buyer for our robots, once we deploy them, we can offer better rates and a better pricing structure for our customers.”
The partnership is the finance company’s first involvement in the delivery-as-a-service (DaaS) industry, as Kiwibot joins a long list of high-tech backed companies from the medical, logistics and Internet of Things (loT) sectors.
While the funding scene in the U.S. robotics industry has certainly taken a few tumbles—with 2022 reported the second-worst year for robotic investments over the past five years, according to a report by TechCrunch—Kiwibot’s first-of-its kind leasing for autonomous delivery robots sets precedent for other startups to consider alternatives to venture lending and venture capital funding.
“Kiwibot’s solution is in high demand in the U.S. and has become indispensable for people leading fast-paced lives. This partnership is the financial push they need to propel their startup into wider markets,” Charles Sellman, president at Kineo Finance said in a statement.
“At Kineo, our goal is to encourage automation and digitalization initiatives in various industries to drive the adoption of high-tech companies’ equipment. Kiwibot’s growth in the DaaS sector meant it was a logical choice for us to support its robotic deliveries helping businesses today and for the future.”
The new financing adds to the $14 million the startup raised so far in venture capital via a multimillion-dollar contract with Sodexo and a $7.5 million pre-Series A investment last year.
Kiwibot’s fleet has completed over 250,000 autonomous deliveries so far, using its GPS technology, advanced camera sensors and artificial intelligence to generate optimal routes and avoid obstacles. Launched in 2017, Kiwibot is present in 41 cities worldwide, including 27 U.S. college campuses, the mains hubs for the startup’s delivery service.
But the company also has its eyes set on gated communities, which it recently began testing in Saudi Arabia and Dubai.
“Our robots work very well delivering within one-mile which is why we are focused on close environments, including high rises and low rises,” said Chávez. “That’s the next chapter in our journey but we are in the piloting stage.”
