Third Wave Automation picks up Series C funding for robotic forklifts

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Third Wave Automation, a provider of autonomous high-reach forklifts, has closed a $27 million Series C round led by Woven Capital, Toyota’s growth fund. This brings the total investment to date to $97 million. Founded in 2018, the company has built a platform that provides users the flexibility to deploy their fleet in four modes: fully autonomous, remote operation, remote assist, and manual operation.

The last round of investment for Third Wave was in February 2023. Return investors Innovation Endeavors, Norwest Venture Partners, and Qualcomm Ventures joined the round.

With the funding, Third Wave plans to scale its Shared Autonomy Platform, expand manufacturing of its multimode TWA Reach forklifts, and support future technology development that advances the use of autonomous forklifts in and around warehouse environments.

“In an industry grappling with a severely constrained labor market and intensifying market competition, Third Wave Automation’s approach of blending AI-powered autonomy with human expertise is transforming warehouse operations,” stated Prashant Bothra, principal at Woven Capital, who is joining the Third Wave board.

“Third Wave’s solution provides reliable automation for vertical movement and placement of goods while optimizing labor efficiency, enhancing safety, and enabling data-driven improvements,” he added. “With access to Toyota’s unparalleled bench of industrial automation and mobility experts, we believe Third Wave is well positioned to chart the future of intelligent material handling, unlocking unprecedented value across global logistics networks.”

“The partnership between Third Wave and Woven Capital creates a strong foundation to advance our company’s strategic vision, reshaping how warehouse operators perceive autonomous forklifts and the value they deliver,” said Arshan Poursohi, CEO of Third Wave Automation. “Collaborating with Toyota will play a vital role in expanding access to our AI-powered solutions and industry-leading autonomous forklifts. Together, we will empower more U.S. warehouse operators to boost productivity, enhance operational flexibility, address labor challenges, and improve safety—all while delivering a fast, impressive ROI.”

TWA Reach Forklift is equipped with automotive-grade 3D lidar and vision sensors. | Credit: Third Wave Automation

Shared autonomy enables Third Wave Automation to continue learning

Third Wave Automation’s technology enables the TWA Reach forklifts to be converted to manual operation with the flip of a switch. This enables a human to quickly jump in the cab and operate the vehicle like any other high-reach fork truck.

On the other hand, the vehicles can function in fully autonomous mode to acquire, lift, and move pallets of goods throughout the facility. The core forklift is designed for high-reach applications, capable of horizontal and vertical movement of payloads. 

Third Wave said the TWA Reach is suitable for tasks ranging from inbound, replenish, and outbound tasks to other applications in between. It can operate in aisles that are 3 m (10 ft.) wide and up to 930 cm (366 in.) high in base configurations.

If the robot gets stuck, the remote-assist feature enables a TWA support agent to remotely operate the vehicle (with local supervision) and teach the robot how to recover from the event. In this way, the system learns and can integrate new situations into the operational tasks capable of the system. This Shared Autonomy Platform uses machine learning to ensure forklifts continue to adapt and improve over time.

TWA equips the robot with automotive-grade 3D lidar, enabling the TWS Reach forklift to see from the floor to the roof and across warehouse aisles. This reduces the time it takes to map fixed environments from months to days.

The advanced perception system, including Collision Shield, provides remote operators with insights into potential obstacles and how to navigate around them, as well as better views of target pick-and-place locations than manual operators.

Third Wave created Armada Fleet Management System (FMS), which enables a single operator to manage multiple forklifts. Integrating with other warehouse management systems (WMS), the Armada FMS allows operators to execute and monitor workflows and dynamically configure warehouse zones. It can dramatically improve worker efficiency and safety, said the company.

The TWA Reach Forklift is equipped with additional 3D cameras near the forks to locate a pallet. | Credit: Third Wave Automation

Holman Logistics deploys TWA Reach forklifts

“We are excited to explore the impact Third Wave Automation’s autonomous solution can have as an integral component of our operations,” said Brien Downie, president of Holman Logistics. “This technology provides an opportunity not only to help us to maintain our industry-leading safety standards, but also to have Holman be among the first companies to deploy such an innovative solution in warehousing and distribution operations.”

Holman Logistics plans to automate a variety of material handling tasks including managing full-pallet inbound movements, racking, picking of pallets to outbound dock floor positions, and replenishing empty locations.

The TLA Reach forklifts also provide improved visibility and collision avoidance. They use obstacle detection systems, guided by 3D lidar and 3D camera feeds, to offer remote operators insights into the location of potential obstacles, even those not visible to the naked eye.

“Third Wave Automation is directly addressing the core challenges faced by many warehouse operators,” said Arshan Poursohi, co-founder and CEO of Third Wave. “Bringing the power of AI, automation, and shared autonomy to intelligent forklifts enables us to deliver world-class performance while driving greater productivity and ensuring safety on the warehouse floor.”

“The value of Third Wave Automation is genuinely transformative,” noted Holman Logistics’ Downie. “Their autonomous forklifts will help us streamline our processes, enable our organization to fulfill customer orders more efficiently and maintain our competitive position in the logistics marketplace. Additionally, the autonomous Third Wave forklifts will play an important role in supporting our core value of ensuring that we always provide a safe environment for our team members.”

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