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Chef Robotics Finds Growth in New Food Markets

Chef Robotics Finds Growth in New Food Markets Chef Robotics Finds Growth in New Food Markets
IMAGE CREDITS: CHEF ROBOTICS

Chef Robotics wasn’t always a success story. In fact, a few years ago, the company teetered on the edge of failure. Founder Rajat Bhageria recalls moments when quitting felt inevitable. But with encouragement from close allies and a long-term vision, he pushed through the uncertainty.

Today, Chef Robotics is thriving. The food tech startup recently secured a $23 million Series A round, has grown to 40 employees, and boasts clients like Amy’s Kitchen and Chef Bombay. Their robots have already produced over 45 million meals in commercial kitchens across the United States.

That’s a stark contrast to several food robotics ventures that have shut down—like salad bot maker Chowbotics, pizza startup Zume, Karakuri’s food kiosks, and agtech-focused Small Robot Company.

So what changed Chef Robotics’ fate? Bhageria made a bold decision: walk away from signed contracts and millions in potential revenue.

The Robotic Grasping Dilemma

Bhageria’s journey began at the GRASP Lab at the University of Pennsylvania, where he pursued his master’s degree in robotics. He imagined a future where robots could handle everyday tasks—washing dishes, mowing lawns, and preparing gourmet meals. But that dream hit a familiar roadblock in the robotics world: the grasping problem.

Robots struggle with delicate tasks like picking up blueberries without crushing them or handling soft cheese without it sticking. Unlike repetitive industrial automation, culinary applications require adaptable robots that can grasp a wide variety of ingredients with precision and care.

Chef Robotics’ original goal was to build a robotic line for fast casual restaurants—a massive industry plagued by labor shortages. Bhageria even secured multimillion-dollar contracts with several brands. But the technology just wasn’t ready. Their robots couldn’t handle the complex variety of ingredients required for each meal in those environments.

While Bhageria proposed starting small—automating a few ingredients to gather data and refine the system—most customers weren’t interested in partial solutions. So, he took a radical step: he walked away.

Pivoting Toward High-Mix Manufacturing

Giving up on fast casual clients wasn’t easy. Bhageria had invested significant time trying to win their trust. But as rejections piled up and VC funding became increasingly scarce after 2021, it became clear that a new strategy was needed.

Then, Chef Robotics discovered a better fit: the high-mix manufacturing segment of the food industry. This includes companies producing pre-made meals like airline trays, hospital dishes, and frozen food offerings. These businesses deal with hundreds of recipes and high-volume production, often under tough conditions.

Bhageria described the reality: “Hundreds of people stand in 34-degree Fahrenheit rooms for hours, scooping food over and over. It’s grueling work with constant labor shortages.”

Unlike fast casual restaurants that require full-order automation, these high-mix facilities operate on assembly lines. Each worker adds a specific ingredient to a tray. This consistency allowed Chef Robotics to deploy its robots more effectively.

What’s more, as the robots handle more ingredients—peas, chorizo, sauces, zucchini—they generate the training data needed to one day return to the fast casual market with smarter, more capable machines.

Raising Capital and Scaling Fast

After making this strategic pivot, Chef Robotics landed an $11.2 million seed round in March 2023. Construct Capital led the round, joined by Promus Ventures, Kleiner Perkins, and Gaingels.

Thanks to growing VC interest in AI’s real-world applications, the next round came quickly. Avataar Venture Partners, led by Mohan Kumar, approached Bhageria to invest. The Series A closed in under a month with continued backing from Construct Capital, Bloomberg Beta, and others.

With this latest raise, Chef Robotics has now secured $38.8 million in equity funding. The company also signed a $26.75 million equipment financing loan from Silicon Valley Bank to support its hardware expansion.

Bhageria called the experience “exhilarating” compared to his earlier fundraising struggles—and now, with momentum on their side, Chef Robotics is setting the table for a smarter, automated future in food production.

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