San Francisco (Reuters) – Self-drive automaker Cruise, backed by General Motors Co, on Thursday said it raised $2.75 billion in its latest funding round with additional investment from Walmart Inc and others, taking the startup’s valuation over $30 billion.
The announcement comes a week after peer TuSimple revealed plans for an initial public offering (IPO), at a time when self-drive technology is yet to be commercialised.
“We are focused on our path to commercialization right now but the IPOs happening in the space right now are a great indication of the strength of the industry and the opportunity self-driving presents,” a Cruise spokeswoman said in a statement to Reuters.
In January, the San Francisco-based startup said Microsoft Corp would join General Motors, Japan’s Honda Motor Co Ltd and institutional investors for a combined new equity investment of over $2 billion.
On Monday, Cruise said it planned to begin deploying a limited number of its Origin vehicles for ride-hail services in Dubai from 2023, its first overseas commercial service.
“Cruise is executing a global strategy with the right partners,” said Grayson Brulte, president at consultancy Brulte & Co. “At the end of the day it will come down to who can cut the best deals which long-term generate revenue and profits.”
Cruise’s relationship with Walmart includes a trial delivery service in Scottsdale, Arizona, announced in November.
Reporting by Hyunjoo Jin; Editing by Christopher Cushing