How Chef Robotics discovered success by turning away its original consumers

INSUBCONTINENT EXCLUSIVE:
A couple of years earlier, Chef Robotics was dealing with possible death.There were a lot of dark durations where I was thinking about
quiting, creator Rajat Bhageria informs A Technology NewsRoom of his six-year-old company
But friends and investors motivated him, so he persevered.Today, Chef Robotics has not only made it through, its one of the couple of food
tech robotic companies that is thriving
The startup, which recently raised a $23 million Series A, has 40 employees and marquee clients like Amys Kitchen and Chef Bombay
Dozens of robotics installed across the United States have actually made 45 million meals to date, Bhageria says.This compares to a
graveyard of failed food tech robotics business, including Chowbotics with its salad-making robotic Sally; pizza delivery robotic Zume; food
kiosk robot Karakuri, and, more recently, agtech Small Robot Company.Bhageria says he conserved his company by doing something that
early-stage creators fear to do: turning away signed customers and millions of dollars in revenue.The understanding problemIt all started
when Bhageria did his masters degree in robotics at UPenns famous GRASP Lab
He dreamed of the sci-fi promised world where robotics did our housework, mowed our yards, and cooked us first-class dinners.Such a world
doesnt exist yet because engineers have yet to fully solve the robotic understanding problem
Training the exact same robotic to clean a red wine glass without squashing it and a cast iron pan without dropping it is a challenging
task.When it concerns robotic chefs, Nobodys built a dataset of how do you get a blueberry and not squish it, or, how do you pick up cheese
and not have it clump up? he describes.His initial concept with Chef Robotics resembled the long-list of the robotics startups that passed
away: a robotic line for fast casual restaurants
Thats a massive market with a chronic staff member shortage.We actually had signed agreements
Like we had multimillion-dollar signed agreements
Obviously, were refraining from doing this any longer
What happened? he said
We essentially could not resolve the technical problem.In those kinds of companies, a worker completes an order by putting together all the
different components required for each meal
These dining establishments desire robots to duplicate that process since the option is to have lots of robots dedicated to, and calibrated
for, a single ingredient, some of which may only be utilized sometimes (were taking a look at you, anchovies)
However Bhageria and group couldnt build a successful pick-up-anything robot since the training data does not exist
He asked his possible customers to let him install robots for one or two ingredients, collecting training information and structure from
there
They stated no.Then Bhageria had an epiphany.Instead of going bust attempting to give existing clients what they wanted, maybe he needed
various clients
It honestly drew, because I spent the last year and a half of my life attempting to convince these people, these quick casual business, to
develop with us, he recalled.Chef Robotics founder Rajat BhageriaImage Credits: Chef RoboticsSaying no cause yesIt didnt aid that
fundraising after 2021 was ruthless
VCs were also looking at the graveyard
We spoke with lots of various funds, Bhageria stated
We just got turned down over and over.Bhageria was thinking about quiting
You get back and are like, what am I carrying out in my life? Am I doing the wrong thing? Should I give up? he remembered.But he dug in and
in March, 2023, raised an $11.2 million seed round led by Construct Capital, while also landing checks from Promus Ventures, Kleiner
Perkins, and Gaingels.Bhageria and team likewise found their ideal market, a part of the food industry known as high mix manufacturing.These
are food makers that have numerous, many dishes, and make countless portions, but normally as meals or meal trays
; salads and sandwiches or primary courses and side meals
These are meals used by airline companies and healthcare facilities, etc, or are frozen food meals for consumers.Rather than one staff
member getting all the components for each meal, high mix staff members form an assembly line
Everyone adds their individual ingredient to the tray repeatedly till the order is total
Then they put together the next recipe.Its in fact numerous humans who are standing in a 34 Fahrenheit space, and theyre essentially
scooping food for eight hours a day, he explains
Its just an awful job.Consequently, this market has chronic labor scarcities as well.Robotics wasnt financially practical for them in the
pastbecause of the range of ingredients involved
But a start-up constructing a flexible-ingredient bot, where the robotics are integrated in collaboration with the food maker, works.Better
still, as we learn how to do this chorizo, or we find out peas, or this sauce, or these zucchinis, the bots get the real-world training data
they require to eventually serve fast-casual dining establishments
Bhageria states this is still on his roadmap.Best of all, thanks to VCs reborn interest in all things AI, fundraising this time was weirdly
easy, Bhageria states
Avataar Venture Partners, co-founded by former Norwest VC Mohan Kumar, was specifically aiming to fund AI in the real world start-ups and
actually pursued Chef Robotics, Bhageria says
He closed this round in less than a month
Avataar led, with existing financiers Construct Capital, Bloomberg Beta, and Promus Ventures piling in, amongst others.The new financing
brings Chefs amount to raised to $38.8 million
He likewise signed a $26.75 million loan from Silicon Valley Bank for devices financing.And the procedure this time was exhilarating, he
stated.