Nomagic, a Polish company that develops robotic arms for logistics, has secured $44 million in funding, Techcrunch reports. The European Bank for Reconstruction and Development led the round, with EIB and previous investors also contributing to it. The list of investors also includes a VC firm with russian ties.
About Nomagic
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Founded in 2017, Nomagic focuses on software development, not hardware. The company uses computer vision and machine learning to create instructions for handling objects.
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Nomagic is a robotic arm company, which started out by handling small consumer electronics and has expanded to include bagged apparel. The company plans to add more categories, such as groceries, reflecting changing consumer habits and online purchasing trends.
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To date, Nomagic has increased its annual recurring revenues by 220% in the last year and expects 200% growth this year due to demand from customers like Apo.com and Asos.
- This is the third multimillion round for the company. In 2022, Nomagic received $22 million in Series A funding and, in 2020, the company closed its seed round at $8.6 million.
Deal details
- The European Bank for Reconstruction and Development led the funding round.
- As a further indication of the company’s institutional mission, the European Investment Bank (EIB) provided venture debt financing to it.
- Khosla Ventures, a California-based VC firm, also joined the round.
The company intends to utilize the funds for technology and business expansion, including its launch in the North American market.
Worth noting that one of the investors in this round is Almaz Capital, a US-based VC firm co-founded by Ukrainian-born Alexander Galitsky. The fund is believed to have close ties with russia, having previously invested in several well-known russian startups and companies.
Alexander Galitsky himself attended official meetings with Putin back in 2020, and came under increased scrutiny as numerous reports regarded past ties to influential russian figures and the defense industry, suggesting potential lingering connections between the firm and russian governmental entities.
Following russia’s occupation of Ukraine’s Crimea in 2014 and full-scale invasion in 2022, Almaz Capital has been trying to distance itself from the state, deleting mentions of its origin from Wikipedia and its website. Its third fund launched in 2021 and explicitly prohibits investments in Russia, underscoring the firm's strategic pivot away from russian markets.
