Formic raises $50 million to expand robotics-as-a-service model

Chicago-based robotics startup Formic has secured $50 million in growth funding through a combination of Series B equity and debt. The funding round was led by Mercato Partners, with debt provided by S2G Investments and participation from Citi, Light Ray Ventures, and Lightscape Partners.

Formic operates a ‘robot-as-a-service’ model, providing manufacturing plants with a subscription that includes hardware, software, maintenance, financing, and monitoring for a single monthly fee. This approach allows mid-sized manufacturers to automate production without significant upfront capital expenditures. The company currently manages a fleet of hundreds of robots across more than 100 facilities in over 30 U.S. states, reporting a 99.6% uptime rate and a 97% customer renewal rate.

The company plans to use the new capital to transition from task-specific automation to more general-purpose robotics and to enhance its AI and robotics capabilities. Formic’s platform integrates hardware from various manufacturers, including KUKA, ABB, FANUC, and Doosan, managed through its proprietary software.