Warehouse Automation Firm GreyOrange Raises $135 Million

Artificial intelligence-driven automation company GreyOrange raised $135 million in a Series D funding round.

The capital will support further adoption of GreyOrange’s fulfillment orchestration platform in warehouses, distribution centers and retail stores, according to a Thursday (Dec. 21) press release.

“Not only has GreyOrange automated the movement of goods within the warehouse, but the company has also built a network that optimizes how retailers move their goods across their entire supply chain,” said Vusal Najafov, whose Anthelion Capital led the round. “Their capability to improve operational efficiency in various settings and their innovative approach in transforming inventory into a more productive asset in warehouses and retail spaces are key reasons for our excitement in leading this funding round.”

Robotic solutions for warehouse tasks “are a greenfield opportunity area — one that is already beginning to shift the balance of power in fulfillment centers from machines supporting people to people supporting machines,” PYMNTS wrote in June.

However, a major pain point for companies that want to integrate warehouse automation is that adding an all-new technical architecture to support the fulfillment often requires a ground-up redesign of their facility.

And while some companies have taken the plunge and constructed entirely automated dark warehouses, this involves spending tens of millions of dollars in capital expenditures — and can be tough to pull off for businesses that are leasing their space.

“Firms wary of integrating future-fit automated solutions often cite the heavy technical and capital expenditure lift, but by taking a strategically tiered-and-timed approach to onboard next-generation automated technologies, businesses can manage the evolution in a lock-step fashion that consistently adds both operational and labor-saving value,” PYMNTS wrote.

Elsewhere in the world of automation, PYMNTS earlier this week examined the way automation had disrupted the food service sector this year.

“Throughout 2023, more restaurants turned to kitchen automation to drive back-of-house efficiency, even as consumers have resisted the increasing automation of the industry,” the report said, citing efforts by chains such as Chipotle and Sweetgreen.

However, consumers remain unsold on restaurant automation. PYMNTS Intelligence found that 33% of men and half that share of women said they would be interested in a restaurant that uses robotics. Chief among consumers’ concerns are the quality and accuracy of the food, along with job displacement for human employees.

For all PYMNTS AI and B2B coverage, subscribe to the daily AI and B2B Newsletters.