How OSARO Scaled Robotic Piece-Picking by Growing Slowly on Purpose

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Overview

In this episode of Manufacturing Happy Hour, recorded in the vinyl listening lounge at Trillium Brewing in Boston's Seaport District, the host talks with Adi Dalvi, VP of Sales at OSARO, about warehouse automation and "calculated growth." The central question is how a robotics company avoids rushing an immature product into customer operations, and what that restraint means for choosing customers, raising money, and deciding when to market. Adi's position is that OSARO waited until it had a product that could be deployed and scaled, then built outward from there. The conversation also covers what founders from different backgrounds bring to a startup.

13 min read

What OSARO Does, in Plain Terms

The host asked Adi to describe OSARO the way they would over a beer. Adi said they have worked in warehouse automation companies for close to ten years and called OSARO one of the most unique of them. Their short version: OSARO has developed vision software and machine learning, which they described as a component of artificial intelligence, and integrates it with articulating-arm robots "to give them hand-eye coordination" so they can pick packages and items in a warehouse.

Calculated Growth: Not Deploying a Research Project

Adi gave a timeline. OSARO was founded in 2015 by co-founders Derek and MK. It came out of stealth around 2016–2017 and had its first deployment around 2019. Adi calls this calculated growth because the founders wanted a deployable product before putting anything on a customer site. In their view, you don't want to deploy a research project into warehouses where customers are fulfilling real orders for their own customers. The company took the time it needed to make the technology reliable enough for production.

Adi says that from roughly 2019–2020 to now, OSARO has reached a product that is easy to deploy and also scalable, which they consider essential in this industry.

Startup or Growth Company?

After a conversation with the host the night before, Adi decided OSARO is no longer really a startup. After almost ten years in business, they would call it an "early stage growth company" at an inflection point. Borrowing from the book Crossing the Chasm, they said the company is about to cross that chasm and scale.

The host noted that ten-year-old companies aren't usually thought of as startups. Adi replied that getting a product right takes a long time. They also stressed that OSARO has stayed lean, at about 45 to 50 people, and intends to stay that way to conserve runway.

Why Companies Rush, and Why Industry Founders Don't

The host asked why companies so often deploy products that are still in the research phase, beyond the pressure of limited funding. Adi's answer centered on OSARO's founders coming from industry. Because they understand the problem, they are trying to solve it rather than pushing an existing product into the market. That background also taught them that deploying research projects on customer sites doesn't work well.

Later in the conversation Adi expanded on this. The value of a founder with an industry or venture background, they said, is understanding the market and its actual needs. They called the company fortunate that Derek came from the VC world, where he had looked at these kinds of technologies and where they fit in the market, and knew there was a real business need. The product was then built to meet that need. Adi contrasted this with academic founders, whom they called "awesome" and credited with great technologies. The typical academic path, as Adi describes it, is creating a technology and then asking where to put it, instead of starting from the industry and building for it.

Choosing the Right Early Customers

OSARO was also deliberate about customers. Adi said the company focused on small and medium-sized companies while getting its product into the market. When the host asked for explicit criteria, Adi named three:

  • Size. Small and mid-sized companies are the right starting point.
  • Team collaboration. These customers have teams willing to work with a newer technology company's team to make the product work.
  • Risk profile. They may accept more risk and can decide much faster than large companies.

In Adi's view, a customer with this profile is more likely to do business with a startup. Now that the product has been proven in production environments, OSARO feels ready to pursue "the larger whales."

Cutting Your Teeth: The Lab and Integrator Partners

On what it took to make the technology ready for larger customers, Adi pointed first to the lab. Downstairs in OSARO's Bay Area office is a 15,000-square-foot robot "playroom" with shelves holding thousands of SKUs the company has tested over the years. The second piece was finding good integrator partners early, who let OSARO put its product on their floors and took a chance on it. Testing against the actual products that would be picked and placed is what Adi sees as making a system robust enough to move from a very early company to one that can scale.

Extending Runway While You Get It Right

The host asked how a company survives financially while perfecting its product. Adi suggested building "gate checks" into the process so current and potential investors can see progress, and said OSARO does this well. They added, while admitting it's a side of the business they know less well, that founders must be selective about where investment money comes from. Just as you seek a partnership with customers, you need a partnership with investors who have faith you can make it work. Case studies from deployments also go a long way in the industry.

Getting Case Studies: Trade for Them

The host said many companies can't get the case studies they want because customers decline. Adi described a tactic from a former boss's rule: "Don't give anything to the customer without getting something in return." First contracts involve a lot of give and take. So Adi negotiates terms where, if OSARO grants a price reduction or takes on more contractual risk, the customer agrees to give a testimonial.

The host, admitting their bias as a podcaster, suggested going further. Add a clause committing the customer to future storytelling opportunities as well, since many customers give one testimonial and then stop participating. They joked this might be the first personal plug in the podcast's history.

Four Founder Personas

The host proposed a game: name the strength each of four backgrounds brings to a startup.

Industry. Adi said industry experience means understanding the components a system needs. As an example, they described co-founder MK, who knows vision and software code very well. That let MK pair the right camera with the system while knowing it needed to be low cost so customers could buy it. Adi said it "all boils down to cost." The host added that people from large organizations understand how those organizations make decisions and how slowly. Startup people, the host said, often underestimate that bureaucracy and may think a deal is nearly closed when they've only finished "step one of five of the vendor approval process."

Startups. Adi, calling themselves something of a "career startup guy," described grit: never giving up, doing everything possible to avoid a "no," and using very few resources effectively. The host added that small startup teams, if hired well, tend to be deeply committed.

Venture capital. Someone who has sat in the VC chair has seen many competing technologies, Adi said, and knows what each does well and poorly. That gives insider knowledge of what the best product needs to include.

Academia. After a detour into Pittsburgh breweries (below), Adi called academics "the backbone of tech." Many of these ideas come out of Carnegie Mellon, MIT, and Stanford, and the open question is how to turn them into viable businesses. Adi spent eight years in Pittsburgh working for Seegrid, which grew out of work by Hans Moravec, one of Carnegie Mellon's lead roboticists, as an example of an academically rooted company that has done well. The host added that anchor institutions matter because they do longer-term research. Even when academics don't start companies themselves, founders carry practical applications from universities into the field.

Adi concluded that everyone has a place. OSARO includes academics, business people, interns, and software engineering graduates, and they said a business needs all of them.

A Brewery Interlude

Mid-game, Adi asked which Pittsburgh breweries the host had visited. The host listed Grist House, Dancing Gnome, the revived Pittsburgh Brewing Company (maker of Iron City and I.C. Light), and Cinderlands. Adi called Grist House their favorite. They and their then-fiancée had considered getting married there, but the in-laws objected because the grounds were still gravel. Adi also recommended Church Brew Works, a brewery inside a former Catholic church, and invited the host to breweries in Greenville, South Carolina. The episode's opening likewise recommended Trillium and Row 34 in Seaport.

Growth With Little Marketing: From a Niche Task to a Full System

The host noted that OSARO grew without much marketing until recently, which contradicts the common advice that "if you build it, they will come" doesn't work. Adi tied this back to focus. OSARO concentrated on getting the piece-picking technology right and then on integrating it with other warehouse technologies to form a holistic system.

Their example: picking apparel and random items that arrive in a tote and placing them into an autobagger. Adi admitted it "might not be the sexiest thing in the world" and is a simple task. But combining the autobagging equipment with OSARO's picking makes a complete deployable system. The customer no longer needs manual labor for that step and can move those workers to higher-value tasks.

The host restated this as starting with a niche solution that had to be perfected, then building a fuller system around it, which is more marketable. Adi agreed and gave examples of how OSARO now pitches:

  • If a facility has autobaggers, OSARO can pair its technology with them.
  • If it has an ASRS, OSARO can place a robot at the ASRS pick port.
  • If it has AMRs carrying single or few items, OSARO can pick those items and place them onto the AMRs.

The point, Adi said, is that these technologies aren't fragmented. You have to look at a facility's full process, not one small piece.

Was Marketing Late?

Asked honestly whether OSARO should have marketed earlier, Adi said previous marketing was probably "just enough" for the company's stage. Now OSARO has several production installations across the United States and Asia, plus products combining several technologies. So the company is "hitting the market really hard" with video content, because it has things to show.

Advice for Balancing Customers, Product, and Storytelling

The host asked how startups should balance landing customers, getting the product right, and telling their story. Adi described a sequence:

  1. Understand the need in the market.
  2. Define your target market and customer list, for example 3PLs, retail, e-commerce, or parcel.
  3. Develop the product until it is mature enough to deploy.
  4. Go after those customers.
  5. Pour fuel on the fire with marketing.
  6. Scale.

The host pointed out the customer-centric thread running through all of it, and Adi agreed. Adi said they couldn't say which part matters most and considers them equally important across a company's life cycle.

Wildcard: Sports

For the closing wildcard question, Adi chose sports. They are a Detroit fan across the board, including the Tigers, Lions, Pistons, and Red Wings, plus Michigan State. At recording time, they said, the Pistons were in the playoffs and had just beaten the Knicks, the Tigers led the AL Central, and they hoped the Lions might reach the NFC Championship. The host, a St. Louis native and Marquette alum, recounted rivalries with Detroit teams. They then told the story of being in Boston for a conference during the 2019 Stanley Cup Final. Following their own rule that attending a high-stakes away game is a bad bet, since winning has limited upside and losing can ruin your night, they stayed away from the arena. Instead they watched the Blues beat the Bruins in Game 7 at Trillium Brewing, where this episode was recorded.

How Going Independent Changed the Host's Life

Adi turned the last question around and asked how the host's life has changed since starting the podcast on their own. The host acknowledged the usual answers, freedom, flexibility, and autonomy, but chose a different one: time to appreciate small things. One favorite is scouting an unreserved spot in each brewery, like finding the brick backdrop in Trillium's vinyl lounge that shielded the recording from noise. Their advice was to appreciate the little things in whatever you do. Adi noted that the host had also been through a startup journey. The host agreed, calling the podcast a bootstrapped startup with no VC backing, and said they enjoy learning from people on the other side of that path.