Why we invested into 1M Robotics
We are huge believers in the power of e-commerce. The ever-increasing penetration of the Internet and smart mobiles has opened for us a whole new realm of possibilities — and consumers have quickly taken notice. Fueled by the Covid-19 pandemic, e-commerce has gained a massive share of the overall retail market at an unbelievable pace, and these dynamics are here to stay.
E-commerce is evolving — so are customer demands
With stronger e-commerce traction come consumers’ raising standards — users are increasingly demanding smooth shopping experiences, with goods being provided quickly and reliably. In the grocery space, for instance, multiple companies with models that promise instant delivery (<15 min) have flourished — and raised >$13bn in venture funding in the last year alone.
At the same time, many companies are looking for levers to increase their brand equity and improve margins. As marketplaces aggregate supply and charge fees that depress merchants’ profitability, brands are doubling down on their D2C efforts to enjoy the benefits of being closer to the end consumer.
Solving the puzzle of last-mile logistics
But fast delivery requires physical proximity, and due to multiple operational and economic constraints, traditional fulfillment methods do not scale. The required fulfillment center network entails complex feats such as labor and inventory management, floor planning, and taking on prime real estate.
1M Robotics is here to solve this problem: it is building the first automated and scalable dark store-as-a-product to provide last mile fulfillment solutions. Its robotic containers are easy to mass-produce and smartly designed, allowing for effective, at-scale deployment in any urban area. By productizing the dark store, 1M Robotics is saving its customers hundreds of thousands of dollars a year, while enabling them to scale up their footprint with an accessible and simple operation. By virtue of being an automated solution, 1M Robotics will provide an alternative that will have an immediate and direct impact on quick commerce players’ margins — finally bringing these models to bottom line profitability.
The journey so far
Today, 1M Robotics has built an impressive customer base, including Fortune 500 industry leaders in the quick commerce and CPG industries. With its first units already operational, the Company expects to deploy hundreds of vessels in the coming years. The 1M Robotics team holds a truly unmatched technical expertise and sector know-how, and is led by prominent and highly experienced founders — Roee and Eyal.
Roee (left) and Eyal
We first invested in 1M Robotics in 2020, and since then we remain hugely impressed with the Company’s progress. In just under 3 years the team has managed to go from design to commercial launch and standardization of a fully robotic warehouse solution. We are proud to be working with the company together with Ibex Investors, Emerge Ventures and INT3. This investment further reinforces our belief in e-commerce and our positioning as tech-enabled consumer leaders — we are excited to be part of this ride.