LG Electronics invests $60M in service robot maker Bear Robotics

LG Electronics is making a strategic investment move to expedite the advancement of Bear Robotics capabilities in service robotics, a key new business area of the company. | Credit: Bear Robotics

LG Electronics Inc. is strategically investing in development of service robots. Bear Robotics Inc. this week said that it has received $60 million in Series C funding led by LG.

The company said this will add to LG’s portfolio for sustained growth, rather than focusing on immediate gains. After finalizing the stock purchase, LG will be the largest single shareholder of Bear Robotics.

“In the service robotics market, we’re focusing primarily on areas such as delivery and logistics,” stated William Cho, CEO of LG. “However, we are carefully considering future directions, keeping open the possibility of equity investments or mergers and acquisitions.”

Bear Robotics focuses on restaurants

Founded in 2017, Bear Robotics produces AI-powered indoor delivery robots that serve the U.S., South Korea, and Japanese markets. CEO John Ha is a former Google technical lead and senior software engineer.

Bear Robotics’ co-founder and chief technology officer also have engineering experience at prominent software companies. Its product features include fleet management software, cloud-based control systems, and evolving platforms for service robots.

The Redwood City, Calif.-based company introduced a larger autonomous mobile robot (AMR) with Servi Plus in March 2023.

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LG leads the shift to software-defined robotics

LG said it is embracing a transition to software-defined robotics (SDR), which emphasizes software more than hardware, similar to what has been seen in the mobility business. To prepare for future growth, the company said it is dedicated to creating scalable service robots on an open-design software platform that can work in a range of settings.

Seoul, South Korea-based LG said that it understands the importance of standardizing AI-based AMRs and that its investment in Bear Robotics is an opportunity to grow its robot business. The company has already installed service robots in airports, hotels, restaurants, hospitals, retail outlets, museums, smart warehouses, and golf courses.

At LG Future Park in Gumi, South Korea, LG said it produces service robots with “world-class” quality, supply chain, and customer-service capabilities.

By combining Bear Robotics’ research and development and software expertise with its own strengths, LG said it will lead efforts to standardize robot platforms to significantly reduce market-entry costs, This will enhance operational efficiency and foster synergies, it asserted.

“Just as Android revolutionized the smartphone era, standardized open platforms are essential for the activation of the robot market,” remarked Ha.

Looking for growth in the service robotics market

LG said that market trends and has led to a business strategy to reallocate resources to high-growth industries in recent years. It claimed that its investment in Bear Robotics shows its commitment to advancing the service robot industry.

Since deploying guide robots at Incheon International Airport in 2017, LG has introduced systems tailored to diverse commercial applications such as delivery and disinfection. The company noted that it has actively pursued expansion into international markets including the U.S., Japan and Southeast Asia.

LG announced its Future Vision 2030 last year to become a “smart life solution company” that connects and expands client experiences across residential, commercial, transportation, and virtual worlds. LG’s “Triple Seven” target is an average growth rate and operating profit of 7% or higher, together with an enterprise value and EBITDA ratio of 7.

“As the service robot market enters a period of growth, this equity investment will significantly contribute to securing a ‘winning competitive edge’ for the company,” said Lee Sam-soo, chief strategy officer at LG Electronics. “From a mid- to long-term perspective, we will seek to develop our robot business into a new growth engine, exploring various opportunities through the integration of cutting-edge technologies such as embodied AI and robotic manipulation.”