If Softbank is backing a tech company, you better keep your eyes open. The Japanese holding company has made a name for itself for being a tech startup expert. This time around, Softbank is placing its chips on a robot warehouse called AutoStore. The Oslo-based startup utilizes cube storage automation to increase the storage amounts of its installations. This system is already used by giant retailers such as Gucci and Texas Instruments.
A couple of months after 40% of AutoStore was purchased by Softbank, the company has decided to go public. In 2020, AutoStore saw some solid numbers — it averaged $182m in revenue and had a margin of EBITDA close to 50%. The company is now aiming for $300m in revenue this year. The IPO has a potential valuation of $10b, while back in April, Softbank valued it at $7.7b.
Why it matters
AutoStore is practically a monopoly in the cube storage market, having pioneered the idea itself. Other companies like Daifuku offer warehouse automation, but AutoStore's technology is one of a kind. This opens the door to new players in the niche warehouse automation market and closes the door to many employees who won't be needed for their labor anymore.
