Regions like the U.S. and Europe are actively revitalizing their industrial sectors after decades of outsourcing manufacturing and operations to countries like China. In line with this trend, Nomagic, a rapidly growing Polish startup that creates robotic arms for picking, packing, and movement within logistics operations, has successfully raised $44 million in a recent funding round.
The company plans to utilize these funds for both technological advancements and business expansion, including its initial foray into the North American market, marking its first sales efforts beyond Europe. The investment is notable not only for its scale but also for the involvement of key investors and the broader developments within the industrial landscape.
One of the most fundamental questions when considering how to enhance regional industrial competitiveness is, ‘How?’ A significant portion of the workforce that once managed factories and warehouses has transitioned to different jobs. In some cases, industrial operators have decreased their workforce to reduce labor expenses, opting for increased automation to improve efficiency. Furthermore, technological advancements raise a central question: What is the future for human roles in an environment increasingly dominated by artificial intelligence and robotics? Early instances highlighting debates on this topic have not always yielded positive results.
For example, there was a recent viral story highlighting a Y Combinator startup that built an AI-driven workplace observer designed to identify employee underperformance. This led to considerable backlash, raising concerns about the potential for “sweatshop-as-a-service.” While such reactions do not necessarily prevent the development of these technologies, they do underscore the ongoing dialogue and struggles that we will continue to face.
Nomagic’s funding appears, at least in part, to mirror the visions of key stakeholders for the future. The Series B funding round was led by the VC arm of the European Bank for Reconstruction and Development (EBRD), a development bank co-owned by over 70 countries and two European Union institutions. This involvement from the EBRD highlights the efforts of governments and their institutions to encourage private businesses to further their goals of industrial revitalization. They view robotics and technology as instrumental in enhancing Europe’s industrial competitiveness.
“Nomagic’s demonstrated record in deploying advanced AI and robotics technologies, combined with its impressive growth trajectory, positions it as a leader in the warehouse automation revolution,” said EBRD’s representative, Bruno Lusic, in a statement. “We’re excited to support the company as it continues to break new ground in this dynamic industry.”
Returning investors Khosla Ventures and Almaz Capital, who also participated in the funding round, further demonstrate the institutional mission. In addition, the European Investment Bank (EIB) is providing venture debt, the only type of investment the institution typically makes.
According to PitchBook data, Nomagic had previously raised approximately $30 million, excluding the EIB debt. While the startup and its investors declined to provide a valuation, Khosla partner Kanu Gulati confirmed to TechCrunch that the funding represents an “up round” for the startup.
The core innovation of Nomagic’s robotic arms is not necessarily the hardware, which contrasts with other robotics companies. “Most of our hardware is off the shelf,” says Kacper Nowicki, the CEO who co-founded the company with Marek Cygan (CTO) and Tristan d’Orgeval (CSO). The company has instead focused its efforts on software.
Utilizing computer vision, machine learning, and other automation technologies, Nomagic has created a comprehensive “library” of different objects and how to move, pack, and handle them. Consequently, their AI-powered robots can be deployed across diverse applications and reconfigured on a case-by-case basis. Nowicki pointed out that this contrasts with how numerous robotic arms have been built and operated.
D’Orgeval acknowledged this is a departure from conventional strategies, but Nomagic has chosen to focus on areas where wheeled mobility is ideal for industrial environments. The company reported its annual recurring revenues have grown by 220% over the past year (though specific figures were not disclosed) and expects another 200% growth this year, driven by demand from both new and existing customers in sectors such as e-commerce and pharmaceuticals. Customers include Apo.com, Arvato, Asos, Brack, Fiege, Komplett, and Vetlog.one, the company stated.
Nomagic’s nearest competitor, Covariant, was the focus of an intriguing acqui-hire deal with Amazon last year. In July 2024, Amazon, known for its substantial investments in robotics for its warehouses, employed Covariant’s founders and also established a major licensing agreement with the startup. It is important to clarify that this was not a complete acquisition; Covariant continues to operate independently. As a benchmark for Nomagic’s potential valuation, Covariant’s most recent valuation was about $625 million in 2022.
“Amazon ‘acquired’ because it’s a hard problem to solve, and they couldn’t solve it,” said Khosla partner Gulati. “And that is Amazon. It shows that there is a huge opportunity for a company like Nomagic worldwide.”
Companies such as Nomagic, Covariant, and other industry players like Berkshire Grey and RightHand Robotics are developing their technologies at a moment when robotics is becoming increasingly integral to industrial operations. Larger companies like Nvidia and SoftBank (which acquired Berkshire Grey in 2023) have recognized the market opportunity, driven by two factors: Large companies are gradually upgrading legacy equipment, and they are also making significant investments and announcements concerning the construction of physical spaces for manufacturing and logistics, effectively creating greenfield opportunities for new equipment development.
The role of governmental bodies in this trend is not to be underestimated: The U.K., the European Union, the U.S., and other regions are advocating for increased investment in industry, and they will be allocating more resources towards these initiatives.
