Singapore-based warehouse automation solutions provider XSQUARE has announced raising S$10.5 million (about $7.8 million) in its Series A funding round anchored by early-stage venture investor Wavemaker Partners.
The funding round was also backed by Enterprise Singapore’s investment arm SEEDS Capital and commercial and industrial vehicles distributor Goldbell Corporation.
XSQUARE said it will use the fresh funds to boost its product development efforts and propel its plans to expand operations in the region.
Founded in 2019, the company provides intelligent warehouse solutions designed to address critical gaps arising from recurring labour shortages and the urgent need to automate and optimise operations. It offers a suite of autonomous forklifts and intelligent warehouse orchestrator software that seeks to simplify warehouse operations, per the announcement.
XSQUARE’s clients include Coca-Cola, GSK, and Katoen Natie. It also recently partnered with Mitsubishi Logisnext, one of the world’s largest material handling equipment companies, to develop a new line of automated guided vehicles.
“Over the past five years, we have enabled companies to overcome automation fragmentation and achieve complete interoperability across a diverse range of warehouses, factories, and dynamic environments,” said Jens Bohnwagner, CEO of XSQUARE Technologies.
In its fiscal year ending March 2023, the company reported $0.33 million in revenue and $2.51 million in losses. Its assets stood at $2.9 million, data compiled by DealStreetAsia’s DATA VANTAGE shows.
Paul Santos, Managing Partner at Wavemaker Partners, the lead investor in the funding round, noted how vital it is for businesses to boost their warehouse capabilities. He said XSQUARE allows companies to optimise their warehousing operations without completely overhauling their system.
Wavemaker Partners is one of Southeast Asia’s largest and most active seed investors in the enterprise tech, B2B, and deeptech space. Some LPs of its previous funds include Temasek, IFC, Concentric Equity Partners, and Vulcan Capital.
In January, the firm disclosed that it raised $24.5 million so far from US investors for its fifth Southeast Asia-focused fund, which seeks to back startups in Southeast Asia’s fast-growing technology industry.
