British self-driving software start-up Oxbotica has successfully raised US$140mln (£115mln) in a series C funding round comprising investments from some notable venture capital funds.
Joining the round into the IP Group PLC (LSE:IPO) portfolio company were Japanese insurer Aioi Nissay Dowa Insurance, Japanese oil refiner Eneos’ VC arm, and Chinese giant Tencent.
IP Group said its clean-tech investment vehicle Kiko Ventures, which was Oxbotica’s first institutional investor, also joined the round.
Funding will be used to speed up the deployment of Oxbotica's Universal Autonomy AI-based operating system, which is targeting goods delivery, urban passenger transportation and heavy industries.
Ocado Group, which has turned its attention to warehouse fulfilment technology in recent times, is also a stakeholder in the company.
Chief executive of Oxbotica, Gavin Jackson, commented: “This landmark investment from world-class investors is a tremendous validation of our strategy to apply self-driving technology where there is persistent and urgent demand - in supply chains, industrial sectors and in decongesting our cities.
“We share a common purpose with our investors as well as our growing number of customers and partners to make the Earth move more safely, more sustainably and more efficiently. We’re invigorated by their confidence and are moving quickly to accelerate the benefits of autonomy for everyone.”
The UK does not currently allow self-driving vehicles on the road without a supervising driver, but that could change in the years to come.
According to the UK government, 8,000 new jobs could be created in the UK from a predicted £42bn industry, and plans for a 2025 rollout of self-driving vehicles are currently undergoing safety consultations.
According to analysts at Jefferies, the funding round brings IP Group’s 14.3% stake in Oxbotica from £16.3mln to £56.5mln.