In the latest Fast Five Short sponsored by the A&M Consumer and Retail Group, Avalara, Mirakl, Ownit AI, and Ocampo Capital Chris Walton and Anne Mezzenga discuss how Simbe has successfully raised $50 million in its latest Series C funding round, signaling a strong interest in robotics within the retail sector. The company plans to use this new capital to expand its technological solutions and pursue strategic growth opportunities, which could reshape the future of grocery operations. As Simbe's aisle-skating bots gain traction in various U.S. grocery chains, the discussion shifts to the broader implications of this investment trend on retail technology. Speakers detail how retailers are increasingly reliant on these robots for inventory management, pricing accuracy, and operational efficiency, making them indispensable assets in stores. With insights from industry leaders and ongoing interest from other retailers, the conversation highlights a potential shift towards more extensive robotic integration in retail by 2025.

Simbe’s recent $50 million funding round has ignited discussions around the evolving landscape of retail technology, particularly as it pertains to robotics in grocery stores. The funding, part of a Series C round led by Goldman Sachs, signifies a robust confidence in tech solutions that promise tangible returns. Simbe’s aisle-skating robots, now integrated into various U.S. grocery chains, are not only enhancing operational efficiency but are also becoming integral to store teams. The episode delves into the implications of this investment, exploring the broader trend of retailers increasingly adopting robotic solutions to improve inventory management, pricing accuracy, and overall customer experience. The hosts underscore the importance of this trend, suggesting that the industry is on the cusp of a significant transformation, with 2025 potentially marking a pivotal year for robotics in retail as the technology expands beyond grocery into other sectors.

The conversation also touches upon the strategic partnerships that Simbe has developed with notable retailers such as Spartan Nash and Albertsons, which are indicative of a growing acceptance and reliance on advanced technology in everyday operations. This strategic growth not only expands Simbe's market presence but also reflects a shifting mindset among retailers who are eager to innovate and enhance their operational capabilities. The hosts share insights from their discussions with industry professionals, emphasizing that once retailers implement these robotic solutions, they quickly realize their value, leading to a reluctance to let them go. The episode is rich with anecdotes and insights that paint a picture of a retail environment primed for technological disruption, where robots are not just tools but valued members of the workforce.

Takeaways:

• Simbe has raised $50 million in its Series C funding round led by Goldman Sachs.
• The funding will help Simbie expand its robotics technology into new product areas and global markets.
• Retailers are increasingly valuing the operational benefits of robotics, indicating a trend in retail technology.
• The consistent demand for robots in grocery stores suggests a promising future for automation in retail.
• Simbe's partnerships with various grocery chains showcase the growing acceptance of robotics in the sector.
• Experts predict that 2025 will be a significant year for the deployment of retail robots.

Companies mentioned in this episode:

• Simbe
• Goldman Sachs
• Spartan
• Nash
• Shoprite
• Northeast Grocery
• Albertsons
• Market Street
• United Supermarkets
• Albertsons Market
• BJ's Wholesale Club
• Schnuck Markets

For the full episode head here: https://youtu.be/xJqW3cfOfRM

Simby has raised $50 million in its latest funding round, according to Grocery Dive.

Simbi, the robotics company whose aisle skating bots are in several U.S.

grocery chains, announced last Thursday it has raised $50 million in a series C round led by Growth Equity at Goldman Sachs.

The robotics company said it plans to use the new funding to expand into product areas, scale its solutions with global deployments and, quote, pursue strategic growth opportunities, end quote.

The company also plans to expand its team, which it has doubled in the past year.

Simby noted in the Thursday announcement that it unveiled this year new and expanded partnerships with retailers including Spartan, Nash, Shoprite, Northeast Grocery, Care4and3 Albertsons banners, Market Street, United Supermarkets and Albertsons Market.

The technology company also counts BJ Whole, BJ's Wholesale Club and Schnook Markets among its current clients.

Chris, what do you think that Simby's $50 million Series C signals about the trajectory of retail technology investments?

Man, and I love this headline.

This is one where we were like unanimous on this week, you know, which, you know, which tends, which tends to happen.

There's usually two or three a week like that.

But, but I love this, I love this announcement because it tells all of our listeners, like, why you should listen and tune into us each week because we are trying to stay on top of the trends.

We are trying to predict where things are going.

And I feel like we had, we, you know, we had some insight, insight into this based on the retailers we're talking to regularly, because I think it shines light on what we've been saying for the past few years now.

And it's very validating of our overall thesis that money, number one, money is still flowing to tech that will show a return.

Because what's the one thing, what's the one thing the grocers have told us that have deployed the robots?

And what's the one thing they've all said?

They won't let them go.

Like they're just a part of the whole team at the store.

Like no one wants them to walk.

Out of the door 100%.

Like they basically say.

They basically say to us every time we ask them, you can take anything you want, but you cannot take my robot.

And that's pretty telling.

And the reason is because they work, you get inventory, you get pricing accuracy, you get planogram compliance, plus you get all the operational offshoots you can when you combine them with ESLs.

And by that I mean the reach of the robot not just continuing in grocery, but starting to extend deeper like traditional grocery, but starting to extend deeper into other verticals in retail as well.

And Goldman Sachs alternatives seems like they tend to agree with that sentiment, at least from this.

From the size of the investment here and the round.

Yes.

And Simbi's strategic growth opportunities that they're working on, we'll be excited to see what kind of retailers they land in next.

And yeah, I don't have much to add, Chris.

I mean, I think anecdotally, I will say that since we released that Schnooks video with the robot last year about this time, and even just after talking to the schnooks team, and I'm still getting emails and direct messages via LinkedIn today where people are asking to get connected with them from other retailers so that they can find out more about what, like the why and the how related to the robots.

Because this is an area that, that people are seriously considering and seriously investing money in right now, like you said.

Yeah, and we got to talk to BJ's too, and see how they're working this thing.

See how they're doing the robot too, now that I think about it.

We got to get on the horn with them and see what they're learning from this as well.