LG Electronics, once a major player in the smartphone industry, is now shifting its focus towards innovative gadgets like robots.
In a recent development, the company disclosed a significant investment of $60 million in Bear Robotics, a startup based in California.
Bear Robotics specializes in creating AI-driven server robots tailored for restaurants and similar establishments. These robots, resembling autonomous tray towers on wheels, are designed to replace traditional waitstaff.
By injecting $60 million into Bear Robotics, LG Electronics now claims the title of the company’s largest shareholder.
According to data from PitchBook, the startup’s previous fundraising round in 2022 saw its valuation surpassing $490 million after considering post-money figures.
Although the exact valuation resulting from LG Electronics’ latest investment remains undisclosed, it’s worth noting that the past year hasn’t been particularly favorable for startups operating in this sector.
While Bear Robotics made waves with its flagship Servi robots in the form of basic trays on wheels, the company’s plans with this particular design remain unclear.
LG’s investment in Bear comes on the heels of LG CEO William Cho’s remarks at CES 2024, made nearly two months ago.
During the event, Cho hinted at LG’s keen interest in equity investments within the robotics sector, specifically those specializing in delivery and logistics.
Now, with this $60 million investment in Bear Robotics, it appears that LG is actively translating its expressed interest into tangible financial support.
Diversification And Quest For An Edge
LG Electronics has undergone a strategic shift since globally discontinuing its struggling mobile business in April 2021.
The Korean giant redirected its focus towards promising growth areas such as smart homes, connected devices, the Internet of Things (IoT), electric vehicle (EV) components, and robotics and artificial intelligence platforms.
The recent investment in Bear Robotics aligned with LG’s broader strategy to diversify and invest in innovative technologies.
Lee Sam-soo, chief strategy officer at LG Electronics, said in a statement “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.”
He added, “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.”
LG’s investment in Bear Robotics marked another significant step in the Korean electronics company’s venture into the robotics industry.
Despite this being LG’s first direct investment in Bear, the company has been actively involved in robotics research and development for several years.
In 2017, LG made headlines by deploying guide robots at South Korea’s largest airport, Incheon International Airport, demonstrating its commitment to advancing robotics technology.
This move showcased LG’s early strides in integrating software and hardware solutions into real-world applications.
Bear Robotics, on the other hand, has its roots in a different narrative. Founded in 2017 by John Ha, a former Google software engineer turned restaurateur, the company emerged from Ha’s firsthand experiences in the restaurant industry.
Ha recognized the operational challenges faced by restaurant owners and staff, which inspired him to conceptualize and develop serving robots as a solution to streamline restaurant operations.
The fusion of Ha’s expertise in software engineering and his insights from the restaurant business laid the foundation for Bear Robotics’ innovative approach to robotic solutions.
Aside from robotics, LG is collaborating with Magna to develop cutting-edge technologies for EV components. As global sales of electric vehicles continue to rise, components like motors and inverters are expected to grow as well.
In 2020, global electric vehicle sales reached 10 million units, and this number is projected to exceed 20 million units by 2022 and 40 million vehicles by 2025.
