Chicago-based Formic, which provides robots-as-a-service automation to manufacturers, raised $50M, including a $40M Series B and $10M in asset-backed financing

The cost of deploying manufacturing automation falls significantly, as companies can now access robotic systems with minimal upfront capital, shifting costs to operational expenses.

Formic, a Chicago-based company offering robots-as-a-service (RaaS) automation solutions to manufacturers, has secured $50 million in new financing. This funding includes a $40 million Series B equity round and an additional $10 million in asset-backed financing. The company's CEO, Saman Farid, confirmed the details of the financing. Formic's RaaS model allows manufacturers to deploy automated systems without significant upfront capital investment, paying instead on a per-task or per-hour basis for the automation services provided by Formic's robots.

This substantial funding round signals continued investor confidence in the Robots-as-a-Service (RaaS) business model for manufacturing automation. The dual-pronged financing, combining venture capital with asset-backed debt, provides Formic with both growth capital and the ability to scale its physical asset base, which is crucial for a RaaS provider.

The influx of capital will likely enable Formic to expand its robot fleet, enhance its AI capabilities, and onboard more manufacturing clients. This move positions Formic to compete more aggressively in a market where traditional automation requires significant upfront capital expenditure, potentially accelerating the adoption of RaaS across a broader range of manufacturers.