|Nuro, a creator of autonomous delivery vehicles, has reached a $5 billion valuation after raising $500 million in Series C funding. The round was led by T. Rowe Price, with support from Fidelity Management and Research, Baillie Gifford, SoftBank and Greylock Partners.
The Bay Area-based company’s worth has almost doubled since it raised $940 million at a $2.7 billion valuation in February 2019, according to PitchBook data.
Nuro has developed a small last-mile delivery vehicle that operates without human drivers. In February, the company received an autonomous vehicle exemption from the US Department of Transportation and is currently operating its vehicles in three states. Nuro has partnerships with brands including CVS, Walmart and Domino’s.
Global venture capital funding for autonomous vehicles has exceeded $5 billion so far in 2020, surpassing last year’s record of $4.9 billion, according to PitchBook data. That capital reflects both the high cost of self-driving vehicles and the heightened need for autonomous services during the pandemic, said Asad Hussain, a mobility tech analyst at PitchBook.
Rival autonomous vehicle tech developer Pony.ai also crossed the $5 billion valuation threshold after raising $267 million last week in a round led by Ontario Teachers’ Pension Plan. Earlier this year, Alphabet‘s Waymo raised $3 billion in its first round of outside capital.