Coimbatore startup: xLogic Labs bets on ‘dark factories’ to power next-gen manufacturing

CHENNAI: In the industrial hub of Coimbatore, a young entrepreneur is attempting to rewrite the rules of manufacturing. Meet Dhanush Baktha, the 25-year-young founder of xLogic Labs, who is building what he calls ‘dark factories,’ which are fully-automated production units run by robots.

The idea, once confined to sci-fi imagination, is now taking shape in TN’s industrial heartland. “I realised it was faster to build a fully automated factory from scratch than to retrofit robots into old ones,” Dhanush tells DT Next, describing how xLogic was born from his experience of working with a Silicon Valley robotics firm.

A robotics enthusiast since childhood, Dhanush’s journey began when he attended a workshop at the age of nine. His passion deepened during his engineering years at Bannari Amman Institute of Technology, where his focus revolved around building machines rather than attending lectures. His stint at Orangewood, a US-based robotics startup, exposed him to the challenges of scaling automation in existing factories. This experience inspired his current venture. At xLogic, the vision is to make manufacturing as accessible as cloud computing. “Just like Amazon Web Services (AWS) rents out servers, we rent out robots,” he elaborates.

The model allows companies to use the robotic infrastructure on a pay-per-use basis thereby eliminating the need for heavy investments in a factory setup. The company’s software enables clients to upload product designs, receive instant manufacturability feedback, and get finished components within days. The system automatically allocates tasks across robots, optimising speed and precision. Within just 15 days of its soft launch, xLogic managed to generate Rs 1 crore in revenue.

The startup’s business is evenly split between India and the US, and Dhanush now targets $50 million (around Rs 400 to Rs 500 crore) in revenue over the next three years. That confidence stems from the fact that xLogic has already drawn attention from global backers including the likes of Balaji Srinivasan, Shruti Rajagopalan of Emergent Ventures and Tyler Cowen ($25,000 as grant), both known for supporting frontier tech ventures. Thus far, the company has raised $150,000 and is closing a pre-seed funding round of $5 million (Rs 45 crore). Support for his idea came also from a personal act of trust that marked a turning point in his entrepreneurial journey.

Dhanush recalls how he met and pitched his idea to Raymond Russell, an early believer in his vision, who extended $20,000 to help him kickstart xLogic’s initial operations. “Silicon Valley people work extremely fast. He just wired the money immediately,” he says, and goes on to share as to how he pivoted from selling robots to setting up his manufacturing as a service, powered by dark robotic factories venture. Operating from a 2,000 sq ft facility, xLogic plans to expand to a 30,000 sq ft hub with over 70 robots running 24x7. The next phase involves developing indigenous actuators and motors in Coimbatore, with the goal of making the city a hotspot for robotics manufacturing.

“In China, robots handle half the factory work,” Dhanush says. “If India wants to grow its manufacturing GDP, we must automate. Nobody wants to work in factories anymore. It’s time the machines did.” Working towards this goal is xLogic, which is scripting a new chapter in India’s manufacturing story, one where lights stay off, but innovation shines bright.