DeepRoute.ai, a self-driving solution provider, announced a new funding round led by Chinese e-commerce giant Alibaba Group Holding Limited BABA.
What Happened: DeepRoute.ai, based out of Shenzhen, China, as well as Fremont, California, said it has closed a Series B funding round, raising a total of over $300 million for the company.
The oversubscribed round was led by Alibaba and other venture capital companies including Jeneration Capital, the company said.
Fosun RZ Capital, Yunqi Partners and Glory Ventures, which are already invested in DeepRoute.ai, also participated in the round.
In late August, reports suggested Alibaba had picked up a 19.68% stake in DeepRoute.ai.
Related Link: China Regulators Ask Tencent, Alibaba, Peers To Stop Blocking Each Others' Links
Why It's Important: DeepRoute.ai said it will use the funding for R&D, scaling up automaker collaboration and fleet operation, and to support the expansion of the team.
Its mobility services comprise medium-duty trucks and robotaxis. The company's long-term strategy includes developing medium-duty trucks for urban logistics, improving transit for shipments and freight delivery.
DeepRoute.ai also expects to augment its robotaxi fleet to more than 150 by the end of 2021, with owned vehicles making up approximately 100 of the total.
The company is operating in Wuhan and Shenzhen with over 1.2 million miles driven safely on public roads. It also received a "Passenger Carry Permit" from the California Public Utilities Commission this June.
At last check, Alibaba shares were down 2.62% to $161.05.
Related Link: 3 Alibaba Analysts Say Valuation Is Attractive Despite Q1 Disappointment
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