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Its no more sci-fi, robots catch the attention of VCs
By siliconindia
Bangalore: Robots may have been a part of Science fictions since more than a decade, however, the real business proposition for the robotic firms are seen now, as venture capital firms turn their attention to robotics.
Pune-based Precision Automation and Robotics India Ltd (PARI) received Rs41.4 crore recently from investment management firm Axis Holding Pvt. Ltd's India Strategic Opportunities Fund. PARI, one of India's biggest robotics firms, provides automation solutions for both manufacturing and non-manufacturing processes. IDG Ventures India Advisors Pvt. Ltd, which manages a $150 million (Rs696 crore) fund and makes early-stage investments in technology-enabled companies, is also eyeing the robotics business. "We have looked at this space and would be interested in investing in it. However, there are certain factors that need to be satisfied," says Manik Arora, founder and managing director, IDG Ventures India.
"Adoption of robotic technology is very limited in India. Hence, we would look at startups that have already bagged some contracts and some clients," says Arora.
IDG Ventures Indias portfolio includes companies such as online advertising network Ozone Media Solutions Pvt. Ltd, security products company iViZ Techno Solutions Pvt. Ltd and multiplayer online games company Kreeda Games India Pvt. Ltd. The firm is part of IDG Ventures, a global network of local venture funds backed by International Data Group, the worlds largest IT media company in terms of reach.
In developed markets, robots are used to carry out functions for which labour may be either scarce or expensive. But in India, because labour is plentiful and inexpensive, it is important that the cost of deploying a robot should be lower than what it would be to hire a person for the same job.
"The price-performance ratio has to be stronger than (in) the developed markets," says Arora.
Indian start-ups have devised robots used to clean air-conditioning ducts in hotels, hospitals and factories, and to clean water tanks used as coolants in processing and manufacturing units. Robots are also used as surveillance aids by the Armed Forces and as educational aids by training institutions.
ThinkLabs, a division of TRI Technosolutions Pvt. Ltd, intends to raise $3-4 million in the next four-five months. "We are looking for funding to expand aggressively in the robotics education field," says ThinkLabs founder Gagan Goyal.
ThinkLabs raised $1 million from Mumbai-based venture capital firm Seedfund in January 2008. With its mentorship, Goyal realized that the ultimate aim of any company in educational robotics, especially higher education, should be career-oriented. It decided to focus on embedded engineering training and set up centres across India.
"We will look at this (robotics) space because at the end of the day there is a technology element to it, but it would be seed-level investment, says Sandeep Singhal, co-founder of venture capital firm Nexus Venture Partners. "We will look at it from that perspective to see how it can scale up, is there a right management backing it, can they take it to the next level, if as an India player, can they build a global business around it."
