Outrider, a company focused on deploying self-driving technology within the critical logistics network, has secured $65 million in a new investment round, occurring only eight months after the company publicly launched. This Series B funding was spearheaded by Koch Disruptive Technologies, increasing the total capital raised by the company to $118 million.

The investment saw participation from current investors who expanded their stakes, including NEA, 8VC, and Prologis Ventures. Additionally, the round welcomed new investors such as Henry Crown and Company and Evolv Ventures.

While not as widely publicized as self-driving passenger vehicles, Outrider’s objective of automating distribution centers holds significant potential and could prove highly profitable for the company that succeeds. These facilities serve as the crucial link between long-distance transportation and warehouses, ultimately reaching the end consumer. Currently, these vital economic centers depend on manual labor and diesel-powered vehicles for repetitive tasks. The United States alone is home to approximately 400,000 distribution yards, illustrating the substantial market opportunity.

The Golden, Colorado-based company, formerly known as Azevtec, has created a comprehensive system comprised of an autonomous electric yard truck, operational management software, and necessary site infrastructure. This complete solution automates typical yard functions, including trailer positioning within the yard and at loading docks. The system is also capable of connecting and disconnecting trailers, managing trailer brake lines, and tracking trailer locations.

Outrider emphasizes the combined advantages of its electric and autonomous technology. The company points out that electric yard trucks are particularly well-suited for autonomous operation due to their lower maintenance requirements, reduced operational expenses, and dependable, clean energy source. According to Andrew Smith, founder and CEO of the company, the challenges presented by COVID-19 have underscored the importance of automated distribution yard solutions.

Outrider, now a team of 110, has successfully completed several pilot programs, including a collaboration with Georgia-Pacific, and has grown its customer base since its public debut in February.