Embotech Secures $27 Million to Expand Autonomous Logistics Solutions
Embotech, a pioneering Swiss company known for its autonomous driving solutions for industrial logistics, has successfully raised $27 million in a Series B funding round. This new investment is set to escalate the rollout of its Automated Vehicle Marshalling (AVM) and Autonomous Terminal Tractor (ATT) solutions across Europe and subsequently into the United States, Middle East, and Asia.
The funding round, led by Emerald Technology Ventures and Yttrium, also saw participation from BMW i Ventures, Nabtesco Technology Ventures, Sustainable Forward Capital Fund, RKK VC, alongside existing investors.
Industry Impact and Expansion Strategy
The funding marks a significant milestone for Embotech, short for embedded optimization technologies, as it strategically positions the company to expand its cutting-edge logistics automation technologies. Embotech’s AVM and ATT solutions are already gaining substantial traction in the market, securing key multi-year contracts within both finished vehicle logistics and port/yard logistics sectors.
According to Andreas Kyrtatos, CEO of Embotech, the successful funding round is a testament to the confidence investors place in the company’s mission to overhaul logistics automation. “This investment enables us to expand our global presence and deliver leading-edge technology, empowering industrial logistics to transition towards a safer, more efficient, and sustainable future,” said Kyrtatos.
Partnership with BMW
Embotech’s AVM business is seeing a significant boost with a multi-year contract signed with BMW. By the close of 2025, Embotech aims to implement its AVM solution in six BMW passenger car plants worldwide. The rollout, which began in late 2023, is currently operational at BMW’s Dingolfing and Leipzig plants and is underway in Regensburg. The Spartansburg plant in South Carolina is also set to adopt the technology by 2025.
Embotech’s AVM technology is groundbreaking; it directs new BMW vehicles over a one-kilometer route between assembly facilities, through inspection tracks, and to finishing areas, all autonomously. Utilizing existing infrastructure equipped with off-the-shelf LiDAR sensors, the system operates independently of changes to vehicle models or factory layouts, thereby supporting expanding production volumes. BMW anticipates accumulating millions of kilometers with this system over the next decade.
Major Rollout in European Ports
In the realm of port logistics, Embotech is preparing for a large-scale deployment of its ATT solution in the Port of Rotterdam in the Netherlands, Europe’s largest port. Over the next two years, 30 electric Autonomous Terminal Tractors (ATTs) equipped with Embotech’s Level 4 Autonomous Vehicle Kit will be deployed. These autonomous tractors will function seamlessly in mixed traffic environments, showcasing Embotech’s proficient use of LIDAR, cameras, and GPS for precise localization and obstacle detection under various weather conditions.
Rigorous testing in the port environment has validated the technology’s reliability and safety, and the ATTs are now primed to revolutionize container transport across the port’s transfer points.
Shared Technology and Efficiency
Embotech leverages a unified technological platform and safety processes across its business units, streamlining operations and fostering rapid innovation. This integrated approach not only enhances efficiency but also strengthens the company’s position in autonomous driving solutions for logistics. The technology delivers tangible benefits, including improved operational efficiency via 24-hour operation, swift handling of peak traffic, and enhanced transparency through digital integration.
By automating vital logistics processes, Embotech also addresses pressing global issues such as labor shortages in the driving sector, reduces Total Cost of Ownership (TCO), and cuts CO2 emissions, offering a forward-looking vision of modern logistics.
Investor Confidence and Future Outlook
Investors are optimistic about Embotech’s potential to lead the autonomous logistics market. Axel Krieger, Partner at Yttrium, remarked on the company’s innovative adaptability in addressing global logistics challenges for both commercial and passenger vehicles. Meanwhile, Marcus Behrendt, Managing Partner at BMW i Ventures, emphasized the transformative potential Embotech holds, especially in the vehicle production process, stemming from its successful collaboration with BMW since 2022.
The investment not only supports Embotech financially but also operationally, backing its quest to reshape the logistics landscape with autonomous driving solutions and increase production efficiency significantly.
With this funding, Embotech is poised for substantial growth, paving the way for new advancements in logistics automation on a global scale. This move underscores the company’s integral role in steering the future of industrial logistics towards greater efficiency and sustainability.
