Nuro Raises $600 Million in New Funding Round - Google & Tiger Global Invest

Nuro Secures $600 Million to Expand Autonomous Delivery Services

Nuro has successfully completed a funding round, raising $600 million. This investment was spearheaded by Tiger Global Management, a new investor, and will be allocated towards accelerating the company’s commercial operations.

Valuation and Investor Details

The recent funding has resulted in an approximate valuation of $8.6 billion for Nuro. This represents a substantial increase of around 72% compared to its valuation from the previous year, as indicated by sources close to the round who wished to remain anonymous.

The Series D round saw participation from a diverse group of investors, primarily consisting of existing stakeholders. These include Baillie Gifford, Fidelity Management & Research Company, Gaorong Capital, Kroger, SoftBank Vision Fund 1, T. Rowe Price Associates, Inc., and Woven Capital. Notably, Google also joined as a new investor in this round.

Expansion Plans and Manufacturing Facility

“This new funding allows us to concentrate on the commercial rollout and scaled production of our third-generation vehicle,” stated Dave Ferguson, Nuro’s co-founder and president, in correspondence with TechCrunch. He further confirmed that construction of their new manufacturing facility in Southern Nevada is scheduled to commence in December, with completion anticipated in 2022.

Strategic Partnership with Google Cloud

Alongside the funding announcement, Nuro revealed a five-year partnership with Google Cloud. Establishing a partnership with a cloud computing platform is a crucial step for any autonomous vehicle company aiming for commercial viability.

Autonomous vehicles, whether operating on roads or within computer simulations for testing, generate significant volumes of data. This makes cloud services a substantial operational expense for companies in the autonomous vehicle (AV) sector.

The collaboration between Nuro and Google will also involve exploring opportunities to enhance and reshape local commerce. The precise implications of this partnership, alongside Google’s investment in Nuro, concerning Waymo – Alphabet’s independent self-driving venture – remain to be seen.

Focus on Package Delivery

Nuro is dedicated to the development of autonomous vehicle technology. Distinguishing itself from many competitors, Nuro’s investment is centered on designing and deploying low-speed, electric self-driving vehicles specifically for package transportation, rather than passenger transport.

Investment History and Growth

Since its founding in June 2016 by former Google engineers Dave Ferguson and Jiajun Zhu, Nuro has consistently attracted investment. The company’s Series A funding round, totaling $92 million and finalized in June 2017, included contributions from Greylock and Banyan, and granted NetEase founder Ding Lei a position on Nuro’s board.

A subsequent investment of $940 million from the SoftBank Vision Fund, received less than two years later, propelled Nuro to the forefront of numerous startups striving to commercialize autonomous vehicle technology.

Key Partnerships

Nuro has successfully forged partnerships with several prominent companies. The company is currently conducting pilots or has completed deployments of its technology with CVS pharmacies, FedEx, Kroger grocery stores, and Walmart.

Note: A previous report incorrectly identified Chipotle as a partner; the company is, in fact, solely an investor.