Embention, a portfolio company of the Axon Innovation Growth IV Fund, the only financial investor in the business, has just signed a commercial agreement with Amazon. Amazon has selected Embention’s autopilot technology to be installed in all the drones it is developing for aerial package delivery.
The Spanish technology company will be a key player in the ultra-fast aerial delivery service that the group founded by Jeff Bezos has already launched in the United States and is expected to reach the United Kingdom by the end of the year.
Based in Alicante, Embention is a world leader in the design and manufacture of autopilots and components for unmanned aerial vehicles (UAVs) and urban aerial mobility (UAM) solutions, including eVTOL (electric vertical take-off and landing) solutions that aim to revolutionise urban transport. The company works with aircraft manufacturers worldwide, installing the Veronte autopilot system or advising on developing customised solutions.
Its products are essential for industrial use in drones (in sectors such as firefighting, agriculture, or package delivery, among others). The company has more than 500 customers in over 70 countries (95% of turnover outside Spain) and a robust pipeline of new customers. These include Toyota of Japan, Airbus, and IAI of Israel.
The company’s revenues were €3.3m in 2022 and €4.7m in 2023 (44% growth).It is estimated that they could quadruple this year thanks to the pipeline and the Amazon deal. The Amazon contract represents revenues of €17m to be generated over the next three years and will significantly impact the company. In addition to the commercial agreement, Amazon has obtained the right to invest in the company with warrants in Embention. This will enable Amazon to participate in the company up to 21% of the capital, which could be increased to 27% if Amazon doubles its purchases in the following years (i.e. exceeding €30m in turnover). This is a significant commitment by Amazon, not only because it trusts in technology as a strategic supplier but also because it believes in the important opportunity that the company currently has in such a disruptive market as urban air mobility solutions.
The Axon Innovation Growth IV Fund entered the technology group in 2022 by injecting €7.5m of capital, with which it obtained the aforementioned minority stake. In the same year, the company went public on the Euronext Access Paris market (ticker: MLUAV), a market for small growth companies.
