Self-driving trucks startup TuSimple has closed a $350 million funding round from a diverse consortium of strategic investors that include major U.S. corporations in rail, retail and freight, according to sources familiar with the deal.
The round, which was oversubscribed, was led by VectoIQ LLC, confirming a report by TechCrunch in September. VectoIQ is the consulting and investment company founded by Steve Girsky, the former GM vice chairman, consultant and investor whose special purpose acquisition company merged with hydrogen electric startup Nikola Corp. this summer.
The injection of capital stands out not only because of its size, but the array of companies involved. Goodyear, Union Pacific, CN Rail, freight company U.S. Xpress and retailer Kroger all participated in the round, sources familiar with the deal told TechCrunch. Existing investors Volkswagen AG’s heavy-truck business The Traton Group and Navistar also participated. (Last month, Traton, which already held a 16.6% stake in Navistar, agreed to acquire its remaining shares.)
TuSimple has raised $648 million since its founding in 2015.
The company declined to comment.
TuSimple was one of the first autonomous trucking startups to emerge in what has become a small, yet bustling industry that now includes Aurora, Embark, Ike, Kodiak and Waymo. While TuSimple’s founding team and its earliest backers Sina and Composite Capital are from China, a chunk of its operations are in the United States, including its global headquarters in San Diego. TuSimple also operates an engineering center and truck depot in Tucson and more recently set up a facility in Texas to support its autonomous trips —always with a human safety operator behind the wheel. TuSimple also has operations in Beijing and Shanghai.
As TuSimple has scaled with workforce and testing in the U.S., it has diversified its customer and investor base. The company has attracted a number of investors and partners in recent years, including UPS, Korean Tier 1 supplier Mando Corporation, Traton Group and now U.S. Xpress.
TuSimple raised $55 million in 2017 with plans to use those funds to scale up testing to two full truck fleets in China and the United States. By 2018, TuSimple began to test on public roads, beginning with a 120-mile highway stretch between Tucson and Phoenix in Arizona and another segment in Shanghai. TuSimple has since expanded operations into Texas.
Last year, the company’s valuation eked over the $1 billion-mark after raising $95 million in a Series D funding round. It’s unclear what TuSimple’s new post-money valuation is.
This post first appeared here: https://techcrunch.com/2020/12/02/self-driving-trucks-startup-tusimple-raises-350m-from-u-s-rail-retail-and-freight-giants/