Why we invested: PHINXT Robotics
In June 2024, Ada Ventures participated in a seed round in PHINXT Robotics, a startup that enables warehouses of any size to deploy autonomous robots with no expertise required.
We believe that robotics will be an essential part of the infrastructure of the economy by 2050. Leveraged properly, automation reduces waste and unlocks access to economic opportunities, better work, and wellbeing for people and the planet. This investment in PHINXT will expose the fund to one of the biggest opportunities for value creation over the next decade
And why is that? E-commerce is booming; Forbes magazine reports e-commerce sales are set to grow 10.4% in 2023. But while there’s more demand for warehouse staff, they’re becoming increasingly difficult to recruit. Logistics UK’s 2022 performance tracker found that over 18% of businesses reported severe to very severe problems finding staff (a big jump from 13% the year before).
This means user-friendly automation is vital. The UK’s Industrial Robotics market is forecasted to achieve a revenue of $232m by 2024. But 90% of warehouses are still fully manual; as many owners can’t find an easy and affordable robotic solution for them.
So, what exactly does PHINXT do?
PHINXT Robotics has developed a platform to deploy autonomous robots in warehouses of any size to scale workflow automation.
There’s no need for a server or IT infrastructure as robots carry out tasks autonomously and are fully configurable through a cloud platform and user interface. The software adapts to different warehouse layouts and covers all eventual use cases including transporting goods in and out, packing, sorting and material handling.
PHINXT does not intend to manufacture and sell robots. The recurring business model is a software subscription with an option for customers to lease robots from partners. The platform works with different robot brands — it’s OEM agnostic. Warehouse owners can start with a few robots and scale up as required without needing expertise.
Why does PHINXT fit the Ada Thesis and what got us excited?
This is a sector tipped for huge growth. It will really change the way we live and work. We’re thrilled to invest in an exciting start-up that fits into our economic empowerment theme.
With the growing trend of automating manual tasks in warehouses and factories, investing in PHINXT Robotics is a strategic move to stay ahead. Robotics augment human productivity rather than replacing it entirely. By leveraging PHINXT’s advanced technology, you can potentially quadruple warehouse output and significantly enhance operational efficiency.
We’re also excited by the team behind PHINXT. Their unique diverse talent combines both academic and technical expertise with strong commercial sensibilities.
Yanwen Chen, CEO and co-founder of Phinxt, is without doubt one of the strongest technical founders we’ve met at Ada. Yanwen has not one but two PhDs focusing on optimization of distributed and autonomous systems and 11 years of experience in robotics managing engineering teams and building software. She developed the algorithm that allows robots to self-orchestrate safely even when they lose connection to central networks.
Her co-founder and CTO Quirino Zagarese has a PhD in Service Computing for Ultra Large-Scale Systems and is an experienced software developer. He has over a decade in software engineering and was Chief Architect at the digital ID platform Yoti where he wrote three patents and launched four global products.
How did the investment happen?
We were introduced to Yanwen through Ada Ventures’ scout, Hailey Eustace, a respected deep-tech angel investor in PHINXT. Hailey has consistently expressed high regard for Yanwen’s significant achievements and ability to deliver customer results alongside superior technical capabilities.
We are delighted to be co-investing with George Mensah from Sure Valley Ventures and angels including co-founder of Wayve, Amar Shah.
Looking forward
PHINXT Robotics will use the investment to grow their sales and marketing as well as their operations teams. They aim to deploy 300+ robots and expand into Europe, fine-tuning their product-led growth strategy.
There is a huge amount of market opportunity. In 2023, the mobile robot market size was worth $5B and there were 0.9M mobile robots deployed in warehouses. In 2027, the market size is estimated at $16B with 2.4M robots.
PHINXT Robotics already has traction, including two customers who also offer scaling opportunities. If the implementation is successful, one of their customers may choose to roll out PHINXT’s technology to their warehouses globally, starting in the UK and Europe, then US and Asia. Beyond warehousing, PHINXT Robotics is poised to capitalise on broader opportunities in autonomous vehicles and drones. We want to help position the company at the forefront of automation across various industries and applications.
