Karthee Madasamy is the Managing Partner at MFV Partners. Karthee invests in frontier-tech startups in robotics, Artificial Intelligence, Energy, quantum computing, and data platforms. He represents MFV Partners' investments in PsiQuantum, Agility Robotics, and Sun Mobility, among others.
Karthee has years of experience in the industry. He shared his valuable insights and thoughts for the 2025 edition of StartupCity about the challenges and opportunities in rolling out Humanoid Robots.
As an early investor in Agility Robotics, now one of the world's leading manufacturers of humanoid robots, I have watched humanoids evolve from concept to reality over the last five years. That is why I was not surprised when Nvidia’s Jensen Huang recently said, “Robotics will be a multi-trillion-dollar market.”
The past year has seen an explosion of interest in humanoid robots, driven by advances in computing power, much of it fueled by Nvidia, and the physical AI innovation it has unlocked. AI is reinventing robotics intelligence and the entire lifecycle of machines while ushering in a new generation of robotics. Public curiosity has also grown, as companies are now showcasing prototypes that demonstrate both practical value and humanlike movement, capturing the imagination of industries and the general public alike.
“I believe the future of manufacturing will involve humans working alongside humanoids and other robots. Each form of automation will be applied where it creates the most value.”
From accelerating production to solving challenges like dexterous hands, we are looking at a leap in robotics innovation. AI-driven simulations of countless real-world scenarios are cutting development hours and costs, making humanoids more realistic than ever.
We are now at an inflection point where humanoid robots are ready to transform manufacturing, logistics, and warehousing. To truly enhance efficiency and flexibility, however, companies must navigate challenges in scaling while capitalizing on emerging opportunities.
The Last Robotics Dominos to Drop: Hands and Feet
Today’s humanoids are impressive, but a few limitations remain before they can be rolled out on a massive scale. They already excel at repetitive tasks requiring human-like mobility, such as moving materials, connecting automation points, and operating in spaces designed for humans. Yet complex, dexterous manipulation is still developing.
That said, progress is rapid. At Agility Robotics, I have seen the shift from simple squeeze-type grippers to sophisticated two-finger manipulation systems. This evolution is crucial, opening new application ranges. While they are not yet at the level of fine motor skills needed for drilling or welding, humanoids are becoming adept at tasks requiring spatial awareness and basic object handling.
Advances are not limited to hands. Humanoid robots are now developing feet that handle slight gradients and steps, which AMRs struggle with. This adaptability makes them more versatile in real-world environments and will drive broader adoption.
A Complementary Humanoid Force, Not a Replacement
It is essential to understand that humanoids are not meant to replace all automation or human workers. Having invested in many robotics companies, I believe the future of manufacturing will involve humans working alongside humanoids and other robots. Each form of automation will be applied where it creates the most value.
Think about human work today. We seek assistance for heavy loads and use different tools for different tasks. The same logic applies to robotics. AMRs may handle long-distance transport, robotic arms may manage assembly, and humanoids can fill the gaps between these systems, much like people do today.
From Pilots to Production: The Road Ahead
Manufacturers, once hesitant to adopt new technologies, are now remarkably open to automation. But moving from pilots to full deployment requires a careful, step-by-step approach that ensures safety.
Rollouts should begin with a single cell or line to confirm effectiveness in a controlled environment before broader expansion. This method reduces risks while allowing organizations to adapt processes. Encouragingly, pilots today are increasingly sophisticated. Robots are operating autonomously for long periods, handling multiple tasks, and adapting to new scenarios. The key question has shifted from “Can this work?” to “How quickly can we scale this?”
Integration with existing systems is another crucial step. Humanoids must work with warehouse management, resource planning, and other automation tools. Fortunately, because humanoids can operate in human-designed spaces, integration is often smoother than with other robots.
The Economics Make Sense
Drawing from my background in the cell phone industry, I see parallels in how economies of scale will reduce costs. Robotics is becoming the new mobile computing platform. Even at current robot-as-a-service prices, typically $4,000 to $10,000 monthly, the economics make sense for manufacturers. As volumes rise, costs will fall significantly, just as they did with smartphones.
Consider that advanced smartphones cost around $1,000 yet contain incredibly sophisticated technology. The same manufacturing efficiencies will apply to humanoid robots.
The robot-as-a-service model is also gaining traction, aligning with the interests of both robotics firms and manufacturers. It reduces upfront investment and ensures ongoing support. Pricing models now include pure rental and rent-to-buy options, offering flexibility to users.
Meeting the Maintenance Challenge
Maintenance is a common concern, but well-engineered robotics companies are addressing it with modular designs and partner networks. Success does not require manufacturers to build deep in-house expertise. Instead, robust ecosystems of system integrators and service providers are emerging to support deployments.
The key is a modular design that allows quick replacement and upgrades of components, minimizing downtime. Companies that invest in thoughtful design and robust construction will hold an edge.
We are also seeing the rise of maintenance networks similar to those for other automation systems, combining robotics companies, integrators, and local providers. This distributed model is crucial for scaling across industries and regions.
Looking Forward to Human-Robot Collaboration
Humanoid robotics will transform manufacturing, but not overnight, and not through wholesale replacement of human workers. Instead, we will see gradual integration, with humanoids working alongside people and other robots.
It is not only about safety and functionality, though those remain critical. It is also about creating natural, intuitive interactions. Robotics companies must design interaction models that account for practical and psychological factors. Visual cues, movement patterns, and non-verbal communication can make robots more predictable and comfortable to work with. These subtle elements will drive workplace acceptance and effectiveness. Over time, this collaboration will not only raise productivity but also reshape workplace culture, creating safer and more engaging environments for employees.
The technical challenges are real but solvable. The greater challenge will be thoughtful implementation strategies that balance both technology and human needs. If done well, humanoids will enhance productivity, improve working conditions, and reinvent industries.
The market potential is indeed in the trillions, but realizing it will take patience, careful engineering, and a clear vision for how humanoids fit into the broader ecosystem.
