How Ati Motors' autonomous robots are disrupting the logistics sector

Inspired by technology used in self-driving cars, Ati's advanced autonomous mobile robots (AMRs) integrate artificial intelligence, computer vision, and cutting-edge hardware

Picture this, a large and bustling factory floor, filled with heavy machinery, endless rows of storage racks and countless busy workers. Navigating this environment would be a nightmare for a clunky, outdated, line-following logistics robot.

Now, imagine an autonomous robot that seamlessly meanders through these obstacles, handling uneven surfaces, and ascending and descending slopes to deliver its payload. Such a robot would revolutionise our perception of industrial automation. The Bengaluru-based deeptech start-up Ati Motors has made this vision a reality.

Inspired by the technology used in self-driving cars, Ati's advanced autonomous mobile robots (AMRs) integrate artificial intelligence, computer vision, and cutting-edge hardware. These innovations enable them to perform complex tasks in dynamic environments, making them an ideal solution for industries like warehousing, logistics manufacturing, and beyond.

According to Saurabh Chandra, the company's CEO, the AMRs have completely "leap-frogged" over the existing technology in the sector. Their robots operate on 3D LIDAR systems, a significant advancement from the 2D LIDAR machines currently employed in the industry.

The difference between 2D and 3D LIDAR systems boils down to accuracy. While 2D systems can measure distance by reflecting light off a single surface, 3D systems expand on this by employing multiple beams of light simultaneously, creating a three-dimensional view of the area.

Last month, the company managed to secure a $10.85 million Series A funding round from True Ventures, a Silicon Valley-based venture capital firm, and Athera Venture Partners. Ati's existing backers include Blume Ventures, Exfinity Venture Partners, and MFV Partners.

Chandra acknowledged the unique challenges hardware companies face in raising funds compared to software firms. "Software scales faster, is easier to update, and has relatively small incremental production costs. In India, especially, it's ten times more challenging to build a hardware business compared to the US," he told Business Standard.

Ironically, Chandra claims that the so-called funding winter, characterised by investors becoming more conservative with their investments, worked in the company's favour.

"The funding slowdown worked out very well for us. The market noise was somewhat removed, and there were more investors willing to engage with companies that have a real business model and positive unit economics," he explained.

Although he did not reveal specific numbers, Chandra affirmed that Ati's unit economics are positive and the company isn't "burning cash to acquire customers."

Ati raised its funds at a time when sectors like deeptech and mobility have begun to witness renewed investor interest, spurred by the increasing integration of artificial intelligence (AI) into products and services.

Previously, Ati Motors had raised $3.5 million in Pre-series A funding in 2021 and also received seed funding from Village Global, an early-stage fund in the Bay Area, supported by renowned entrepreneurs like Bill Gates, Mark Zuckerberg, and Jeff Bezos.

The company claims to have achieved a strong product-market fit within the automotive, tyre, and electrical industries and is now exploring other sectors like pharmaceuticals, chemicals, injection moulding, and more.

Currently manufacturing its products in Bangalore, Ati also has a small sales and services team in Detroit. The fresh influx of funds will aid the company's expansion into various international markets and the enhancement of its existing product suite.

"Now we have found product-market fit, and we intend to scale up our sales. Our number one priority at the moment is an international go-to-market, specifically in regions like South East Asia, such as Thailand and Japan, and also others like Europe and Mexico," Chandra emphasised.

However, an international expansion doesn't mean that Ati is shifting its focus away from the Indian market.

"The Indian market is working out great for us. We had initially thought that India might not be receptive to next-gen technology, but that's not the case. The market has taught us that we need more cutting-edge technology because India is a tougher market. What works in India works globally, but the opposite is not true," said Chandra.

Ati Motors currently offers two products—the Sherpa Tug and RollerTop. Its bestselling product, the Sherpa Tug, can transport payloads of up to 1,000 kilograms. The company has also launched a new product, Sherpa Pivot, which can be customised for different use cases.

With 18 clients, including names like Bosch, CEAT, Hyundai, and TVS, across 30 plants in India and the US, the company is optimistic about its growth prospects.

"We are still at a very early stage and have a long way to go, but we have seen very strong outcomes from the early deployment of products with our clients," Chandra concluded.