Startup Embodied is shutting its doors and its $800 robot designed for kids aged 5 to 10 will soon become non-functional. Alongside the demise of the robot, Embodied has also announced that warranties, guides, repair services, and the associated parent app and support staff will no longer be available to customers.
This closure has been attributed to a ‘failed critical funding round’ by the company. It has further explained things on its website, “We had a lead investor ready to finalize the round, but at the last moment, they pulled out, leaving us without any viable options to keep the business running. Despite our relentless pursuit of alternative funding, we could not secure a replacement in time to maintain operations.”
Further details about the withdrawn funding were not disclosed, it has previously received investments from major investors that include Toyota AI Ventures, Intel Capital, Sony Innovative Fund, Amazon Alex Fund and Vulcan Capital. However, the lead investor mentioned in the statement by the company remains unknown.
Moxie, the robot was first introduced by Embodied in April 2020 and was described as a safe and engaging animate companion for kids, Due to its financial situation and impending dissolution, Embodied has stated that it is unable to offer funds to most Moxie owners. However, there may be an exception for customers who purchased a Moxie within the last 30 days.
For such customers, Embodied has mentioned that if the assets of the company are sold, they will do their best to offer refunds, though the company stressed that this is not a guarantee.
Embodied also recognized the challenges faced by customers who financed the pricey robot through third-party lenders and advised them to reach out to their lenders. Some users may find themselves paying interest on a toy that is no longer functional.
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