Industrial robot maker OTTO Motors is planning a push into global markets for its autonomous mobile robot platform (AMR). The company has raised $29 million to accelerate its product roadmap and attract global partners. OTTO’s products provide autonomous material handling in manufacturing.

Ontario-based OTTO is the industrial division of Canadian firm Clearpath Robotics. OTTO provides autonomous mobile robots for material handling inside manufacturing facilities and warehouses. Over 70% of the AMRs installed by OTTO are in Fortune Global 500 companies, including GE, Toyota, Nestle, and Berry Global.

In recent months, OTTO has also seen a surge in demand from essential businesses responding to increased operational risks associated with Covid-19, including food, beverage and medical device manufacturing.

The funding was led by Kensington Private Equity Fund with participation from BMO Capital Partners, Export Development Canada (EDC), and previous investors iNovia Capital and RRE Ventures.

OTTO’s AMR technology addresses a skills gap for industrial workers. The skills gap is projected to leave 2.4 million positions unfilled between 2018 and 2028, according to a 2018 study by Deloitte and The Manufacturing Institute. The need for automation is projected to grow as companies seek ways to improve business continuity during and after the COVID-19 pandemic.

The company sees demand for autonomous solutions in manufacturing growing in the aftermath of the Covid-19 crisis.

“Mobile robots are no longer a luxury in the workplace; they are a necessity,” said Clearpath CEO and co-founder Matthew Rendall. “In a post-COVID world, AMRs enhance worker safety and bring resiliency to supply chains. As enterprises adapt, AMR demand will accelerate globally. This investment will enable us to grow to meet the evolving needs of the factories and warehouses of the future anywhere in the world.”

“Clearpath and its OTTO autonomous mobile robots have been on our radar for some time.  We see strong trends favouring the acceleration of industrial automation generally, with Clearpath positioned very strongly to benefit from this rapidly growing sector,” said Rick Nathan, senior managing director at Kensington. “OTTO’s technology leads the market for core infrastructure for the factory of the future. It is becoming increasingly important for customers across all manufacturing and a compelling opportunity for our investors.”

OTTO has helped Berry Global Group, a Fortune 500 manufacturer, meet increasing customer demand despite labour shortages at a plant in Kentucky. Berry Global’s fleet of 19 OTTO AMRs operate 24×7 supplying cases to and from automated production machines.

“Our mission to ensure a safe and productive work environment, along with the challenges of persistent labour constraints, has led us to increase investments in creative automation solutions,” said Scott Spaeth, director of corporate automation at Berry Global. “The OTTO vehicles address those challenges and deliver improved operations reliability, while enhancing the working environment for our employees.”