Zalando invests in AI robotics

Online fashion platform Zalando has invested in German robotics company Sereact. It develops AI-powered robotics solutions. The investment is meant to accelerate automation of logistics in ecommerce, particularly in the processing of returns.

Online marketplace Zalando is expected to launch in Bulgaria this summer, and wants to expand further in Europe. Expansions mean more complex logistics processes, and usually also more returned products. The company is now investing in Sereact’s robotics solutions, in an effort to optimize returns processes.

Platform that learns from operational data

Sereact is a company based in Stuttgart, Germany. It develops robotics solutions for warehousing and production. Its main product is the ‘Cortex’ platform, which controls multiple robot systems and learns from real-world operational data. This means that the platform is AI-driven.

So far, the company has raised over 145 million dollars (126.8 million euros). Currently, its newest Series B funding round has grown to a total of 116 million dollars (101.6 million euros). This is thanks to Zalando’s investment, amongst others.

Automated inspection and restocking

As many other fashion retailers, Zalando has to process a high amount of online returns. This is often done manually, as products need to be inspected, reprocessed and restocked. Sereact has created automated systems to make this more efficient and scalable. For example, its robots can recognize objects and grasp them precisely. Zalando’s investment shows that the platform is interested in automating the returns process.

‘With Zalando on board, we will scale Cortex and expand into new markets’

“Zalando is one of Europe’s leading ecommerce platforms, built on operational excellence at real scale. Their decision to back Sereact is a strong signal of confidence in physical AI for the warehouse – and in the technology we are building together in Europe”, said Sereact in a post on LinkedIn. “With Zalando on board, we will scale Cortex and expand into new markets – working alongside a partner who understands fulfillment from the inside.”