Scandit AG has secured $80 million in funding to be invested in expanding its barcode scanning and augmented reality software, the company announced. The large round of funding for the company shows how established markets for technologies like barcode scanners are being transformed through the availability of smartphones and other devices loaded with increasingly powerful edge processing capabilities.
The Series C funding round was led by venture capital firm G2VP. Other participants include Atomico, GV, Kreos, NGP Capital, Salesforce Ventures and Swisscom Ventures.
By 2024, the industrial barcode scanner market will increase by $538 million worldwide, according to research provider Reportlinker.com.
“Scandit’s platform puts an enterprise-grade scanning solution in the pocket of every employee and customer without requiring legacy hardware,” said Ben Kortlang, general partner at G2VP, in a prepared statement. “This bridge between the physical and digital worlds will be increasingly critical as the world accelerates its shift to online purchasing and delivery, distributed supply chains and cashierless retail.”
Scandit had already raised $43 million in the previous Series B funding round in July 2018. The startup has since tripled recurring revenues, reported a two-fold growth of its enterprise customer portfolio and its international team. Its customer portfolio includes 7-Eleven, Alaska Airlines, Carrefour, DPD, FedEx, Instacart, Johns Hopkins Hospital, La Poste, Levi Strauss & Co, Mount Sinai Hospital and Toyota. Its technology has been used to scan barcodes on more than 100 million devices.
The new investment will be spent on business development in new markets such as APAC and Latin America, on expanding in North America and Europe and for R&D.
The computer vision and machine learning platform leverages barcode scanning, text recognition (OCR), object recognition and augmented reality (AR) for camera-equipped smart devices. The company says its technology works in any lighting environment and scan angle and can also work on flawed labels. Retail, transport & logistics and manufacturing companies have successfully used Scandit’s technology to develop mobile apps for shopping, self-checkout, inventory management, proof of delivery, asset tracking and maintenance. Healthcare organizations have also introduced it in daily activity to save time and costs.
Mobile computer vision and smart devices have been in high demand since the global health crisis has led to social distancing. In an interview with Crunchbase News, Samuel Mueller, CEO of Scandit, says retailers are reevaluating their scanning solutions now that online purchases have skyrocketed due to COVID-19. The high volume of packages automatically increases the number of delivery drivers who could use Scandit’s technology to speed up the process.
“COVID-19 has shone a spotlight on the need for rapid digital transformation in these uncertain times, and the need to blend the physical and digital plays a crucial role,” Mueller said in a prepared statement. “The smartphone is a personal tool that can be deployed with powerful computer vision software to seamlessly interact with everyday objects and display real-time insights with AR-overlays. Our new funding makes it possible for us to help even more enterprises to quickly adapt to the new demand for ‘contactless business’, and be better positioned to succeed, whatever the new normal is.”
AR | IoT | object recognition | Scandit | venture funding