Verity AG, a startup using drones to make logistics warehouses more efficient, on Tuesday announced that it has raised $32 million in funding to support growth initiatives.

The Series B round was led by investment firm A.P. Moller Holding. Exor Ventures and a number of other investors participated as well, bringing Verity’s outside funding to over $60 million.

Online retailers require the ability to track how much merchandise is stored at their logistics warehouses at any given time. When a company detects that a certain product is in short supply, its procurement team can order more. Not identifying product shortages in time can potentially lead to delivery delays.

Companies monitor product availability by regularly scanning the merchandise at their warehouses. Historically, the process was carried out manually using handheld barcode scanners. Verity says it has developed a more efficient way of performing the task.

The Zurich-based startup sells drones that can automatically scan merchandise at logistics warehouses. According to Verity, its drones are capable of flying in low-light conditions without a human pilot. As a result, they can carry out merchandise scans at night while a warehouse is not operating.

Verity says its drones enable companies to track not only the quantity but also the location of the merchandise at their warehouses. If an item is placed on the wrong shelf, finding it takes more time, which can slow the order fulfillment process. The drones detect misplaced merchandise and notify chain teams.

The startup says its drones allow companies to track merchandise more accurately than traditional manual approaches. Moreover, it promises to reduce costs in the process. 

Verity was launched in 2014 by Chief Executive Officer Raffaello D’Andrea, who had previously co-founded robotics startup Kiva Systems. Amazon.com Inc. acquired the latter startup in 2012 for $775 million. The acquisition led to the creation of Amazon Robotics, the business unit that develops the online retail and cloud computing giant’s custom warehouse robots.

“The completion of our Series B funding round is an important nod to the value our system provides to clients, and it demonstrates investor confidence in our industry-leading solution and team,” D’Andrea said. 

Verity counts major brands such as Ikea Group Corp. and Samsung Electronics Co. Ltd. among its customers. The startup says its drones have been deployed at 30 logistics facilities in 13 countries to date. It will use its newly closed funding round to further grow its international presence and hire more employees. 

Photo: Verity