Nuro Valuation Soars to $5 Billion with $500M Funding

Nuro, a startup specializing in autonomous delivery and created by two former Google engineers, has secured $500 million in funding, demonstrating continued investor interest in long-term ventures like robotics and self-governing vehicle technologies. This latest investment establishes Nuro’s post-money valuation at $5 billion.

This Series C funding round was spearheaded by investment vehicles managed by T. Rowe Price Associates, Inc., and included contributions from new investors such as Fidelity Management & Research Company and Baillie Gifford. Current investors, including SoftBank Vision Fund 1 and Greylock, also participated in the round.

Nuro was established in June 2016 by Dave Ferguson and Jiajun Zhu, both previously engineers at Google. Initially self-funded by its founders, the company has consistently attracted investment. Nuro’s initial Series A funding of $92 million, finalized in June 2017, featured investments from Greylock and Banyan, and granted NetEase founder Ding Lei (also known as William Ding) a position on Nuro’s board. However, it was the substantial $940 million investment from the SoftBank Vision Fund in February 2019 that significantly advanced Nuro beyond many other companies working to commercialize autonomous vehicle technology. Following the SoftBank investment, Nuro’s valuation reached $2.7 billion, effectively doubling in approximately 18 months, and enabling the company to expand its workforce to over 650 employees.

In contrast to many other companies in the autonomous vehicle sector, Nuro has concentrated its efforts on developing a low-speed, electric, self-driving vehicle specifically designed for package delivery, rather than passenger transport. Early testing and pilot programs utilized Toyota Prius vehicles outfitted with Nuro’s autonomous system. In 2018, Nuro collaborated with Kroger to launch a delivery service pilot program in Arizona, which progressed from using Toyota Prius vehicles to its R1 delivery bot. Nuro has also formed partnerships with companies like CVS, Domino’s, and Walmart.

The company has subsequently created a second-generation vehicle, designated the R2. This delivery bot, intended for local deliveries for businesses such as restaurants and grocery stores, received an exemption from the federal government earlier this year, permitting it to operate without a human driver.

“We are observing a remarkable increase in consumer demand for secure and reasonably priced local delivery options,” stated Zhu, CEO and co-founder of Nuro, in a press release. “This funding, uniting us with many of the world’s leading investors, firmly positions Nuro for a future where our advanced technology becomes integrated into people’s daily routines.”

Currently testing and operating the R2 on public roads in Arizona, California, and Texas, the company informed TechCrunch that the new funding will enable it to “grow with confidence for the coming years, providing a multi-year timeline to expand operations into numerous cities and across various markets.” Nuro’s immediate priorities include expanding its service in Houston and integrating the R2 into commercial operation.