US-based autonomous driving software developer Cruise added $750m from big-box retailer Walmart and unnamed institutional investors to its latest round yesterday, boosting it to $2.75bn.
The capital was raised at a valuation of about $30bn and follows a $2bn first close in January this year featuring software provider Microsoft and carmakers Honda and General Motors (GM) as well as unnamed additional investors.
Cruise is developing autonomous driving software in addition to robotics and hardware such as cameras and sensors.
The company is also working on a ride hailing app intended to serve as the basis for a robotaxi service and is trialling its technology in driverless vehicles in San Francisco. It agreed a deal on Monday to operate the service in Dubai and could also be expanding into delivery vehicles.
John Furner, president and chief executive of Walmart subsidiary Walmart US, said in a blog post: “The investment will aid our work toward developing a last mile delivery ecosystem that is fast, low-cost and scalable.
“We began working with Cruise in November of last year developing a delivery pilot in Scottsdale, Arizona. We have been impressed with Cruise’s differentiated business model, unique technology and unmatched driverless testing. We also value our shared commitment to a zero emissions future.”
GM bought Cruise for $1bn in 2016 and spun it back off two years later with a pledge of up to $2.25bn of funding from telecommunications and internet group SoftBank’s Vision Fund.
Vision Fund and GM joined Honda and investment management firm T Rowe Price to invest an additional $1.15bn in the company in mid-2019 at a post-money valuation of $19bn.
