Cyngn Inc. has entered a partnership with Chandler Automation to place its DriveMod Tugger, an autonomous vehicle platform, into Chandler’s dealer network. The collaboration focuses on food processors and packers, enabling automated material transport between processing lines and packaging stations and addressing the sector’s chronic labor‑cost pressures.
The deal marks a strategic pivot for Cyngn, which has previously concentrated on industrial logistics and manufacturing deployments. By leveraging Chandler’s established presence in the food‑processing industry, Cyngn gains immediate access to a new customer base and a vertical that is actively seeking automation solutions to offset rising labor costs and improve throughput. Chandler’s expertise in optical sorting, inspection, and robotic palletizing complements Cyngn’s technology, creating a compelling end‑to‑end automation offering.
Cyngn’s financials underscore the importance of this expansion. In Q3 2025 the company generated $70 k in revenue, up from $47.6 k in Q3 2024, while the net loss widened to $8.4 M from $5.4 M. Similar patterns appear in earlier quarters: Q2 2025 revenue of $33.7 k versus $8.7 k in Q2 2024, and a net loss of $13.0 M versus $11.8 M. The company raised $32 M in capital during Q2 2025, extending its runway through 2027 and providing the liquidity needed to pursue new verticals.
Management expects the Chandler partnership to generate recurring revenue through Cyngn’s Enterprise Autonomy Suite subscriptions, which are a core component of the company’s business model. CEO Lior Tal noted that Chandler’s deep integration in the food‑processing ecosystem positions Cyngn to capture a market that is “still heavily reliant on manual transport between stations.” The partnership is therefore seen as a key driver of future growth and a hedge against the company’s current net‑loss trajectory.
The competitive landscape in agriculture automation remains fragmented, with several players offering specialized solutions. Chandler’s established customer base and Chandler Automation’s focus on optical sorting and palletizing give the partnership a competitive edge, while Cyngn’s autonomous platform adds a layer of operational efficiency that competitors have yet to match. Headwinds include the need for significant upfront capital investment and the challenge of integrating autonomous systems into legacy processing lines, but the partnership’s alignment with labor‑cost pressures and the growing demand for continuous‑flow operations suggest a favorable tailwind for adoption.
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