Pavlo Pikulin, the founder of the Deus Robots start-up, says: robots should not be afraid of. They are not designed to replace people but to improve human work. Pikulin has already convinced Nova Poshta which introduced his sorting robots in its warehousing facilities. The next step is to launch mass production and enter the international market. It will be supported with investments from BGV Trident Capital founded by Ilia Ponomarov and ATB co-owner Hennadii Butkevych. The company signed a $5 million investment contract late in December.
What does Deus Robots develop?
Pikulin is a software developer who founded Deus Robots start-up in 2018 by investing a total of $1.5 million, including his own $1 million and $500,000 of angel investment. He has been also working since that time in WhaleApp, the game holding company which designed mobile games such as Hidden Hotel, Family Zoo, Resort Hotel and Rise of Heroes.
Pikulin works 12–16 hours a day performing tasks quickly and getting his priorities right to combine work in the two companies. He considers Deus Robots his main business and seeks to pay more attention to the start-up in the future.
Deus Robots portfolio includes three types of robots: for sorting goods up to 30 kg; for transporting racks up to 300 kg; and a pallet transportation robot. The latter is the most expensive as it can lift cargoes up to 1 ton. “It needs a more powerful battery and stronger wheels,” Pikulin says, 32. , the start-up will launch three new models next year designed to address other tasks such as taking parcels from shelves.
Pikulin does not talk about prices: “it’s inappropriate in the robotics market.” The reason why is: added value of services. According to Pikulin, businesses are not used to working with robots. That’s why they sell more than a machine: they sell “solutions” helping with Internet connection and putting the robot into operation in the warehouse. It is a costly service but the price will drop once companies can run industrial “out of the box” robots.
In 2012, Amazon spent $775 million to acquire Kiva start-up manufacturing warehouse robots. According to MWPVL, a logistics consulting firm, a set of 50–100 Kiva robots will cost between $2 mln and $4 mln, and a large warehouse requires up to 1,000 devices and $20 mln of investment. Other specialized studies show that the average unit price of the device varies from $25,000 to $100,000.
Pavlo Pikulin, Founder of Deus Robots. A personal archive photo
Deus Robots built 40 robots in 2021. Next year it plans to make 1,000 devices reaching the operating profit level. Pikulin wants to use the profit for business development. “We don’t expect to make a net profit anytime soon,” he says.
The start-up robots are currently assembled in Ukraine from parts purchased in China, Europe and the US. They have no plans of launching production in China; Pikulin wants to rent a facility in Kyiv, where Deus Robots already has its own R&D center. “There are lots of talents in Ukraine, and their work is easier to monitor,” explains Pikulin. Diia.City tax privileges for IT business and start-ups will be launched here next year. Pikulin managed to ensure that robotics designer start-ups are included as Diia.City residents. “This will create a favorable economic environment for building robots in Ukraine,” he says.
What will $5 million be used for?
In a new investment round, Deus Robots got funding from BGV Trident Capital, a US-based company founded by Ilia Ponomarov, a Ukrainian citizen of Russian origin, and a Ukrainian businessman Hennadii Butkevych. How were investors selected? They must share my vision of the future where robots will be able to do all human works,” says Pikulin.
Expertise in listing companies on the stock exchange is another selection criterion. Ponomarov knows how to do it: he merged his company Trident with US-based Lottery.com via the SPAC process in November. How will the new investment be used?
Team expansion from 25 to 80 persons.
Gaining access to the following international markets: Germany, the Czech Republic, Poland and the US.
Launching mass production of up to 400 robots per month.
The start-up needs a factory to launch mass production. Pikulin was going to building his own factory for $20 million a year ago, but decided to rent cheaper premises in Kyiv and buy equipment. Deus Robots seeks to work with foreign businesses that have warehousing facilities such as: Retailers, postal operators, pharmaceutical and automotive businesses. The start-up only cooperates publicly with Nova Poshta in Ukraine, however Pikulin is having negotiations with 13 local firms.
Deus Robots A personal archive photo
ATB co-owner, who invested in Deus Robots, is currently looking at foreign counterparts. “We are searching for solutions that could meet our critical needs. We are conducting dialogues with Kapelou, UISLab and GreyOrange,” the company’s representatives told to dev.ua.
Deus Robots A personal archive photo
What can and cannot robots do?
Deus Robots devices look like moving platforms which navigate using QR codes on the floor. The same platforms work in Amazon warehouses — “they have the best design”, says Pikulin.
Robots help increase work efficiency: a person can sort an average of 500 parcels per hour, while a robot works 3 times faster sorting 1,500 parcels per hour. One robot can work approximately 18 hours a day, and its work hour is less expensive than that of a human. Moreover, robots do not need vacations or days-off. Robotics investments could be repaid right on the first day in case of renting, or after 1–3 years if you buy them.
Deus Robots A personal archive photo
The weak points are: you need to have a reliable Internet connection and even floors. “It’s cheaper to level the floor than to build a robot that could operate on an uneven surface,” says Pikulin. Besides, Deus Robots devices is not suitable for sub-zero temperatures: new, more expensive robots are needed for cold warehouses, and the company does not have them yet.
