The Edge

Robot pizza maker reportedly takes $375 million investment from SoftBank

Key Points
  • Zume Pizza reveals a cash injection of $375 million in a securities filing.
  • Media reports suggest it is the first of two payments from Softbank's Vision Fund.
  • The robot pizza and logistics firm is valued at about $2.25 billion.
Robots take on pizza at Silicon Valley startup

Zume Pizza, a start-up that uses robots to make pizza, has reportedly received $375 million of backing from the tech investment firm SoftBank.

The California company announced the cash injection in a securities filing. The investor identity was not revealed in the filing, but the Wall Street Journal has been the first to report that the cash has come out of SoftBank's Vision Fund.

The Japanese bank's Vision Fund is worth $100 billion. It is most heavily backed by a $45 billion payment raised from Saudi Arabia's Public Investment Fund.

The WSJ report added that the SoftBank is expected to invest a further $375 million in the company, valuing the pizza delivery company at roughly $2.25 billion.

Zume Pizza employs a mix of robots and humans to create and deliver food. Robots squirt and spread the tomato sauce onto the uncooked pies and then transfer them into 800-degree ovens

The robots cost between $25,000 and $35,000 each and are made by ABB, a global manufacturer that typically deals with robots for large manufacturing facilities.

The company also plans to run trucks that use remote controlled ovens to fire up the pizzas enroute. Switching the ovens on from the cloud allows the company to bypass rules preventing food preparation in moving vehicles.

The company sold its first pizza in April 2016 and currently delivers to the Californian suburbs of Atherton, Cupertino, Palo Alto, East Palo Alto, Menlo Park, Mountain View, Stanford, Santa Clara, Sunnyvale and Campbell.

At the time of publication, neither SoftBank nor Zume had responded to a CNBC request for comment.

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