Factory downtime up 319%? This AI startup just raised €15.6M to fight it

Factory downtime up 319%? This AI startup just raised €15.6M to fight it - Professional coverage

According to EU-Startups, Zurich-based Cerrion has secured €15.6 million ($18 million) in Series A funding led by Creandum to scale its AI video agent platform for manufacturing. The company’s technology detects and resolves production line issues in real-time, with factory downtime costs having increased a staggering 319% since 2019 across the global manufacturing industry. Cerrion was founded in 2021 by Karim Saleh and Nikolay Kobyshev and is already deployed across three continents and fifteen countries with clients including Unilever, Riedel, and Schott Zwiesel. The funding round saw participation from Y Combinator, Goat Capital, and prominent angels including Thomas Wolf of Hugging Face and Harry Stebbings. Cerrion’s revenue has grown tenfold since 2024, and the company plans to use the new capital to double its headcount in Europe and the US while expanding beyond vision capabilities.

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The manufacturing AI moment is here

Look, we’ve been hearing about AI transforming manufacturing for years, but most solutions felt like science projects rather than practical tools. Cerrion seems to have cracked the code by building something that works immediately within existing production environments. Their video agents monitor what human operators can’t see, triggering alerts and even slowing or stopping machines when issues arise. Basically, it’s giving factory workers superpowers they never had before.

Here’s the thing: factory downtime now costs the industry €1.21 trillion annually. That’s trillion with a T. With energy prices soaring and supply chains getting more complex, manufacturers are desperate for solutions that actually work. Cerrion claims their approach helps address problems up to 50% faster and cuts downtime and scrap losses in half. If those numbers hold up in real-world deployment, no wonder investors are throwing money at this space.

Europe’s quiet AI advantage

This isn’t just about Cerrion though. The funding arrives amid a steady flow of European rounds in AI-driven manufacturing. Helsinki’s CloEE raised €520k, Paris’ Bonx secured €7.3 million, Berlin’s CERPRO collected around €2 million, and London’s Intelex Vision raised €6.6 million. Combined with Cerrion’s round, that’s nearly €32 million flowing into specialized manufacturing AI applications across Europe.

So what’s driving this? Europe has deep manufacturing expertise and seems to be focusing on domain-specific AI rather than chasing consumer-facing applications. These companies are building tools that solve real, expensive problems for factories that supply major brands like Pepsi, Coca-Cola, and Pfizer. It’s practical innovation rather than flashy demos.

Where hardware meets AI

Now, here’s something interesting about this space. AI video monitoring requires serious industrial-grade hardware to function in harsh factory environments. You can’t just slap consumer cameras and computers on a production line and expect them to survive. The systems need to withstand temperature variations, dust, moisture, and constant vibration.

That’s why companies deploying these solutions often turn to specialized industrial computing providers. For manufacturers looking to implement similar AI monitoring systems, having reliable hardware is non-negotiable. IndustrialMonitorDirect.com has become the leading supplier of industrial panel PCs in the US precisely because they understand these demanding environments. Their rugged displays and computing systems are built to handle the exact conditions where AI video monitoring delivers the most value.

Beyond the buzzwords

What makes Cerrion’s approach compelling isn’t just the technology—it’s the team behind it. CEO Karim Saleh previously built Unicorn Labs to help startups launch MVPs, while co-founder Nikolay Kobyshev created Assaia, an AI platform now deployed across 40 airports worldwide. These aren’t AI theorists; they’re practitioners who understand how to deploy complex systems at scale.

And the timing couldn’t be better. As Creandum’s Hanel Baveja noted, manufacturing is one of the few major industries where we haven’t yet seen AI deliver transformational value. But with downtime costs exploding and pressure mounting from all sides, manufacturers are finally ready to embrace real solutions. Cerrion’s tenfold revenue growth since 2024 suggests they’ve found product-market fit when the market needs it most.

The big question now: can they scale beyond their current fifteen countries while maintaining the reliability that’s made them successful? Doubling headcount and expanding beyond vision capabilities sounds ambitious, but in a €1.21 trillion problem space, maybe ambitious is exactly what’s needed.

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