Pony.ai Valuation: Chinese Autonomous Vehicle Startup Reaches $5.3 Billion

Pony.ai, a Chinese startup focused on autonomous vehicle technology and a recent entrant into the field, now has a valuation of $5.3 billion after securing $267 million in a new funding round.

This investment was spearheaded by TIP, an innovation fund managed by the Ontario Teachers’ Pension Plan Board, which concentrates on late-stage venture and growth equity investments in companies developing groundbreaking technologies. Current investors including Fidelity China Special Situations PLC, 5Y Capital (previously Morningside Venture Capital), ClearVue Partners, and Eight Roads also contributed to this round.

According to the company, the newly acquired capital will be allocated primarily to research and development initiatives.

Throughout its four years of operation, Pony.ai has successfully attracted investment from investors, original equipment manufacturers (OEMs), and Tier 1 suppliers. Operating in both China and California, the company has accumulated over $1 billion in funding since its inception, including a $400 million investment from Toyota. Pony.ai has established several partnerships and collaborative relationships with automotive manufacturers and suppliers, such as Bosch, Hyundai, and Toyota.

Pony.ai is developing what it refers to as a versatile virtual driver capable of operating a wide range of vehicle types, from compact cars to large trucks, and across both ridesharing and logistics (delivery) networks. The company indicated in 2019 its intention to adapt its automated technology for use in the long-haul trucking sector. However, it is perhaps most recognized for its work concerning robotaxis.

The company has initiated ridesharing and commuter programs in Fremont and Irvine, California, and Guangzhou, China. Last year, a fleet of electric, self-driving Hyundai Kona crossovers, featuring Pony.ai’s autonomous system and Via’s ride-hailing platform, began transporting passengers on public roads. This robotaxi service, known as BotRide, was not fully driverless, as a human safety driver was present in each vehicle at all times. The BotRide pilot program was completed in January 2020.

Following this, the company launched a public robotaxi service called PonyPilot in the Irvine region. In response to the COVID-19 pandemic, Pony.ai transitioned this robotaxi service from passenger transport to package delivery. In April, Pony.ai announced a partnership with e-commerce platform Yamibuy to offer autonomous last-mile delivery services to customers in Irvine. This new delivery service was implemented to increase capacity and meet the increased demand for online orders resulting from the COVID-19 pandemic, as stated by Pony.ai.