Industrial AI robotics company Leap Automation has raised £7.9 million from investors to support its service to the food and drink sector which suffers from spiralling supply side costs and a chronic labour shortage..

The new funding is led by £3.5m from the Scottish National Investment Bank, with other support from Mercia Ventures and WA Capital. They join existing funders, Scottish Enterprise and Alba Equity.

Leap’s AI-powered technology is applicable to companies of all sizes and is seen as a solution for companies looking to resolve staffing and cost issues.

Having originally started out as an oil & gas business, Leap was forced to pivot in 2020 and the management struck up a relationship with the food and drink team at Johnston Carmichael.

Ben Stuart, CEO, said: “From the outset we have strived to build simple, flexible and cost-effective robotic systems that solve our customers’ most pressing challenges.

“The need is greater now than ever before, with labour shortages costing the UK food sector over £1.4bn last year. This funding will enable us to increase headcount, scale our operations and solve more problems for more customers through further product development.”

Jane Reoch, executive director at SNIB, said: “Leap Automation is aligned to the bank’s missions; creating skilled jobs in the northeast and helping to create and scale a more competitive and diversified economy through innovation.”

Jonny Nixon, investment director at Mercia Ventures, said: “We’re really excited about the potential of Leap AI at a time when inflation and labour shortages are placing ever greater pressure on business. We think this technology can play a crucial role in boosting productivity across a range of end markets.”

Kerry Sharp, director of entrepreneurship and investment at Scottish Enterprise, said: “High-growth companies are transforming Scotland’s economy by developing innovative products and services, creating high-value jobs and internationalising their operations. Leap AI has the potential to do all of this.”