Xpanner Bags $18M To Revolutionize Construction Sites With Physical AI

Xpanner secured $18M in Series B bridge funding led by Korea Investment Partners to expand its AI-powered construction automation platform across the U.S.

Xpanner has raised $18 million in a Series B bridge round. Existing backer Korea Investment Partners led the financing. KB Investment Co. also participated in the deal. The raise brings Xpanner’s total funding to $38 million since its founding in 2020.

Xpanner builds automation tools for construction sites. However, its approach is different from most robotics companies. Rather than selling new machines, it retrofits the equipment contractors already own.

Its flagship product, the X1 Kit, installs hardware and software onto existing construction machinery. As a result, those machines can operate autonomously. Customers do not need to buy new equipment or replace a single machine.

Xpanner delivers its technology through an Automation-as-a-Service, or AaaS, subscription model. Under this model, customers subscribe to task-specific automation licenses. Available tasks include piling, material handling, trenching, and grading.

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Because incremental subscription revenue flows at near-zero marginal cost once hardware is deployed, the company maintains a gross margin above 80%. Xpanner reached monthly break-even in 2025. It is also on track for full-year profitability in 2026. Revenue has grown sharply as well. The company reported $3 million in revenue in 2023. That figure climbed to $7 million in 2024, then surged to $21 million in 2025.

Xpanner plans to use the new capital to strengthen its development capabilities. Specifically, the company will advance its next-generation physical AI hardware and software platform. It will also deepen its core component engineering and expand its data and AI infrastructure.

This capital will accelerate our physical AI solutions tackling labor shortages and jobsite productivity and fast-track our subscription model expansion. Our focus now is building recurring subscription revenue on top of a proven customer base, driving both growth and profitability.
Ryan Park, CSO, Xpanner.

Xpanner originally founded its operations in South Korea. It moved its headquarters to the U.S. in 2023. Today, the company is headquartered in Santa Fe Springs, California, and maintains an office in Seoul.

Notable customers include Mortenson, Black & Veatch, and QCells. Furthermore, the company says it has either completed projects or entered active discussions with 19 of the top 20 U.S. solar engineering, procurement, and construction firms. More than 90% of its cumulative revenue has come from American customers.

Xpanner’s three co-founders bring deep industry experience. CEO Henri Lee spent two decades in executive roles at Bobcat and Hyundai Infracore. He led unmanned construction projects and corporate venture initiatives.

CTO David Shin led robotics and automation at Volvo Construction Equipment for 20 years. He was also the first in the industry to commercialize semi-automation features for construction machinery.

CFO Ryan Park spent more than 12 years in heavy equipment at Bobcat. He then spent eight years in venture capital at Korea’s largest commercial bank.

Xpanner sits at the intersection of two sectors attracting major investor attention. Physical AI startups those applying artificial intelligence to real-world hardware and robotics have already raised more than $37 billion globally this year alone. That figure shatters the previous full-year record of $21 billion set in both 2025 and 2021.

At the same time, venture investment in construction and property-related startups has rebounded. Much of that recovery is driven by AI-focused companies. Together, those trends give Xpanner a strong position heading into its next phase of growth.

Disclaimer: This news is based on publicly available information. NervNow has not independently verified any claims.

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