AAA Peloton catches corporates to raise $60m

Peloton catches corporates to raise $60m

Fleet management systems provider Omnitracs led a $60m series B round for US-based automated car technology developer Peloton Technology yesterday that included several corporates

Intel Capital, BP Ventures, Nokia Growth Partners and UPS Strategic Enterprise Fund all invested, representing semiconductor maker Intel, petroleum producer BP, communications equipment provider Nokia and logistics service provider UPS respectively.

The corporate venturing units were joined by automotive systems producer Denso International America, oil and gas company Schlumberger, carmaker Volvo, conglomerate Mitsui, aerospace company Lockheed Martin, electronic display provider Okaya and fuel management company Breakthrough Fuel.

The investors were rounded out by Sand Hill Angels, Band of Angels, Birchmere Ventures, B37 Ventures and US Venture Partners.

Peloton is developing technology for connected and automated vehicles, including a platooning system that works by linking the active safety systems of pairs of trucks through a cloud-based system that enables them to travel closely together if conditions are acceptable.

The series B funds will support the commercial roll-out of the platooning technology later this year together with the development of additional systems.

John Graham, CEO of Omnitracs, said: “Macro-level trends like the internet of things, cognitive applications, faster delivery of goods and new levels of customer service are at the core of our new partnership with Peloton.

“We want to expand the possibilities of truck automation on the nation’s highways and set new standards in integrated dispatch, tracking and routing as well as driver-facing applications to maximise and optimise the orchestration of both same-fleet and cross-fleet platooning.”

Peloton has now raised $77.5m in total, $1.3m of which came in a 2013 seed round backed by UPS Strategic Enterprise Fund, Sand Hill Angels, Band of Angels, Birchmere Ventures and Castrol InnoVentures, the strategic investment arm of lubricants producer Castrol.

Intel Capital co-led Peloton’s $17m series A round, which closed in 2015, with Denso International America, investing alongside all the company’s seed investors as well as Lockheed Martin car components supplier Magna International and Volvo’s corporate venturing unit, Volvo Group Venture Capital.

Kathy Winter, vice-president of Intel’s Automated Driving Division, said yesterday: “Making cars and trucks safer and more efficient with increasing levels of active safety equipment is critically important to the global economy.

“Advanced driver assistance solutions such as Peloton’s, that are based on scalable, secure computing platforms are a key element on the path to fully autonomous driving.”

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