Article: Xpanner Lands $18M To Offer ‘Automation As A Service’ To Construction Sites

Published: May 15, 2026 | Crunchbase News

Xpanner, a startup that automates construction work through robotics and physical AI, has raised $18 million in a Series B round, Crunchbase News reported exclusively. Existing backer Korea Investment Partners (KIP) led the round, described as a bridge financing, with KB Investment Co. (KBIC) also participating. This brings the Santa Fe Springs, California-based company's total funding to $38 million since its 2020 founding.

Rather than replacing customers' existing machines, Xpanner retrofits them into automated assets through its flagship X1 Kit, which adds hardware and software enabling autonomous operation. Customers subscribe to task-specific automation licenses covering piling, material handling, trenching, and grading through Xpanner's Automation-as-a-Service (AaaS) model. CEO Henri Lee compared the approach to a smartphone gaining new capabilities through app updates, noting there's no upfront investment or rip-and-replace required.

On the financial side, the article highlighted strong growth. Revenue rose from $3 million in 2023 to $7 million in 2024 and $21 million in 2025, with $8 million in revenue and $1 million in EBIT in Q1 2026 alone. The company is targeting $60 million in ARR by year-end and reports gross margins above 80%, driven largely by its subscription-based model.

Investors quoted in the piece pointed to strong fundamentals. KIP's Sangjoon Park cited robust margins, near-zero churn, and rapid account expansion as evidence the value proposition is real rather than pilot-driven. KBIC's Kiho Lee noted that Xpanner's task-specific, software-driven scaling approach lets it expand within accounts without proportional cost increases, unlike competitors that automate entire machines end-to-end.