The two Lytra founders Etienne Fieg (left) and Benedikt S. Vogler (right)
Photo: lytra

Attack on the lucrative service business in mechanical engineering: HTGF invests in AI startup Lytra

Munich-based startup Lytra has closed a pre-seed funding round led by High-Tech Gründerfonds (HTGF). The company is developing an AI operating system for industrial services, enabling machine manufacturers to scale and automate their after-sales business.

What sets Lytra apart from many industrial tech startups is its clear focus on the service sector in mechanical and plant engineering – an area that is often under-digitized but offers enormous economic potential. In industry, the service business can account for up to 50 percent of revenue and typically achieves significantly higher margins than the new machinery business.

At the same time, demands are increasing: machines are becoming more complex, customers expect fast response times, and the shortage of skilled workers is making it difficult to build efficient service organizations. Lytra positions itself precisely at this intersection with a AI-based operating system specifically for the Manufacturing Service.

Automated service processes through Lytra's AI agents

At the heart of the product are AI agents that automate typical service processes, such as ordering spare parts, scheduling service technicians, and answering technical customer inquiries. The AI is end-to-end integrated into the customer's existing IT systems and accesses existing expert knowledge from documentation, service manuals, and process data.

The advantage: According to Lytra, the solution is ready for use from day one.Service staff are relieved of some tasks and can concentrate on complex special cases, while turnaround times in customer service are significantly reduced.

Focus on German SMEs from 2026 onwards

With the capital from the pre-seed round, Lytra plans to roll out its solution more broadly in the market following successful pilot projects. The target group is primarily medium-sized machine and plant manufacturers in Germany, the company explained. Etienne Fieg, Co-Founder and CEO of Lytra:

“The successful completion of the pre-seed financing round is an important milestone for us. The fresh capital will enable us to become the preferred partner for German SMEs in the mechanical and plant engineering sector from 2026 onwards when it comes to service and after-sales business.”

HTGF sees great, as yet untapped value potential.

Investors also consider the service business to be one of the biggest untapped value drivers in the industry. Timo Bertsch, Investment Manager at HTGF, categorizes:

"After-sales service is one of the largest, yet currently underutilized, value drivers in mechanical engineering. Lytra addresses this structural problem with a clear focus on automation, scalability, and securing expert knowledge through AI."

Bertsch continued, saying that the founding team combines deep industry knowledge with technological excellence and has already demonstrated the potential of the approach in pilot projects.

Want more startup news? Subscribe to our newsletter here:
Anyone who wants to stay regularly informed about financing, start-ups and technology trends in the Munich start-up ecosystem can here Subscribe to the Munich Startup Newsletter.

With its AI operating system for manufacturing services, Lytra addresses a key bottleneck in medium-sized industrial companies: the efficient scaling of service and after-sales business. The pre-seed funding from HTGF underscores the relevance of this approach – particularly given the shortage of skilled workers, increasing complexity, and growing service revenues in mechanical engineering.

Sources & further information

  • Press release lytra, January 2025
  • Company information lytra
  • Information from the High-Tech Gründerfonds (HTGF)

read more ↓