Also, the innovative micromobility startup that emerged from Rivian last year, has successfully closed another Series D funding round, raising $150 million. This significant capital injection is set to accelerate the company’s strategic expansion beyond its initial offerings of pedal-assist electric bikes and commercial cargo quads, focusing heavily on the development of autonomous delivery vehicles.

The Series D round was spearheaded by Prysm Capital, with continued support from existing investors including Eclipse, Greenoaks, and MVP Ventures. This latest funding brings Also’s total capital raised to an impressive $455 million since its inception less than two years ago. The company has stated that the fresh funds will be channeled directly into advancing its autonomous driving technology and simultaneously progressing multiple autonomous vehicle designs, all built upon the same electric architecture developed for its consumer e-bike and commercial delivery quad.

Jay Park, co-founder and managing partner at Prysm Capital, articulated the firm’s rationale for investing, drawing parallels to their early backing of Rivian. Park noted that their confidence in Also stems from its application of a similar vertically integrated, design-focused approach to smaller-form-factor electric vehicles. This investment follows a $200 million round a few months prior, which included Greenoaks, Prysm Capital, and a strategic investment from DoorDash, solidifying a multiyear commercial agreement for autonomous delivery vehicle development and deployment.

Also originated as a specialized project within Rivian, driven by founder and CEO RJ Scaringe’s interest in micromobility. Though now an independent entity, Rivian maintains a minority stake, and Scaringe serves on Also’s board, indicating a continued strategic alliance. The company has previously indicated plans to leverage Rivian’s technological expertise, retail presence, and economies of scale as it grows. While the company introduced its first products, including the TM-B two-wheeler and two quad vehicles (one slated for Amazon), last October, it has faced some initial delays in delivering its e-bike launch edition to customers. However, shipments are now commencing, with pre-orders open for performance and standard models expected to begin deliveries in the fall.

Key Takeaways

• Also secured $150 million in Series D funding, led by Prysm Capital, bringing its total raised to $455 million in under two years.
• The new capital will primarily accelerate the development of Also's autonomous driving technology and multiple autonomous vehicle form factors.
• The Rivian spinout is expanding its focus beyond electric bikes and cargo quads into autonomous delivery, leveraging its existing electric architecture and maintaining strategic ties with Rivian.

Editor’s Analysis & Impact

This significant funding round for Also underscores the escalating investor confidence in the micromobility and autonomous delivery sectors. By pivoting towards autonomous vehicles, Also is positioning itself in a highly competitive yet potentially transformative market, directly addressing the burgeoning demand for efficient last-mile logistics solutions. The investment will undoubtedly accelerate the company’s research and development, potentially bringing its autonomous solutions to market faster and disrupting traditional delivery models.

Also’s strategic partnership with DoorDash and its continued ties to Rivian provide crucial advantages in terms of market access, technological synergy, and scaling capabilities. While initial product delivery delays highlight operational challenges, the company’s strategic shift towards higher-value autonomous technology indicates a clear vision for future growth and market impact.

Frequently Asked Questions

Q: What is Also's primary focus with this new funding?
A: The new $150 million capital is primarily dedicated to accelerating the development of Also's autonomous driving technology and the creation of various autonomous vehicle form factors, building on its existing electric architecture.

Q: What is Also's relationship with Rivian?
A: Also originated as a specialized project within Rivian and spun out as an independent company. Rivian maintains a minority stake in Also, and Rivian's CEO, RJ Scaringe, serves on Also's board, indicating continued strategic ties and potential collaboration.

Q: What types of vehicles does Also develop?
A: Initially, Also launched pedal-assist electric bikes and commercial cargo quads. With the new funding and strategic shift, the company is significantly expanding its focus into autonomous delivery vehicles, utilizing its established electric architecture.