A London-based artificial intelligence company has emerged from stealth mode after securing £22.5 million in Series A funding to develop autonomous agents for industrial sectors. Arrakis, founded earlier this year, aims to deploy its model-agnostic technology directly into enterprise IT systems to automate complex, non-desk operational workflows across aerospace, energy, manufacturing, and logistics.
The funding round, which values the company at approximately £108 million ($140 million), was led by Blossom Capital. It also saw participation from existing investor Accel, which previously led a £5.6 million seed round, alongside GFC, MainObject, Rerail, and prominent angel investors including senior executives from Datadog and OpenAI.
Targeting the Industrial Economy
While much of the recent investment in artificial intelligence has focused on knowledge workers and office-based software, Arrakis is targeting the physical economy. The company argues that the most significant return on investment for artificial intelligence lies in the 70 per cent of the workforce engaged in industrial operations, rather than the 30 per cent working behind desks.
The company’s platform is designed to integrate with existing enterprise systems, allowing for the automation of core operational processes without requiring a complete overhaul of legacy software. By embedding forward-deployed engineers directly at customer sites, the firm aims to deliver measurable improvements in operational efficiency within weeks, rather than the months or years typically associated with large-scale enterprise software deployments.
This approach comes at a time when Western nations are under increasing pressure to reindustrialise and improve supply chain resilience. Equipping established industrial firms with advanced data tools is seen as crucial for maintaining global competitiveness. The Department for Science, Innovation and Technology has consistently highlighted the importance of integrating advanced technologies into traditional sectors to boost productivity.
Model-Agnostic Architecture
A key feature of the Arrakis platform is its model-agnostic design. Rather than locking customers into a single artificial intelligence provider, the system can route tasks to the most appropriate model. The company typically begins by building solutions using proprietary models before transitioning workloads to open-source alternatives, a strategy it claims can significantly improve output quality while reducing computing costs.
This flexibility addresses a growing concern among enterprise executives regarding vendor lock-in and the fluctuating costs associated with large language models. By maintaining independence from specific model providers, the firm offers industrial clients greater control over their technological infrastructure and data security.
The deployment of such autonomous systems is becoming increasingly common across various sectors, though it is not without its challenges. As agents are emerging as a top cybersecurity concern, ensuring the secure integration of these tools into critical industrial networks remains a priority for both developers and enterprise clients.
Commercial Traction and Expansion
Despite only being founded in 2026, Arrakis has already secured several enterprise clients, including industrial and logistics firms listed on the New York Stock Exchange. The company has adopted an unusual commercial model for enterprise software, tying a significant proportion of its fees directly to customer performance outcomes. In one instance, the platform reportedly helped a client reduce procurement cycle times by 90 per cent.
The firm has found particular success with family-controlled businesses, which often possess the ability to make long-term strategic decisions and execute top-down initiatives more rapidly than publicly traded corporations with complex approval processes.
With the fresh capital, Arrakis plans to triple its current headcount of approximately 15 employees. The company, which currently operates from London and Paris, intends to open new offices in New York and the Middle East to support its growing international client base. This expansion further cements the UK capital’s position as a leading centre for artificial intelligence development, as London emerges as a global hub for AI safety and innovation.
The founding team brings significant experience from major technology firms. Chief Executive Rafael Quintanilla, a former venture capital investor, established the company alongside Haroun Beltaifa, Romain Fouilland, and Mikhail Galkov, who bring engineering expertise from organisations including Palantir, Delivery Hero, and Revolut.
As the market for industrial artificial intelligence continues to expand, Arrakis faces competition from both established consulting firms and other well-funded technology startups. However, its focus on rapid deployment, measurable outcomes, and model flexibility positions it as a notable new entrant in the effort to modernise the global industrial base.
