Self-driving Cruise startup attracts $2.75bn

Photo: AP

US Cruise self-drive startup announced it had managed to raise additional 2.75 billion dollars in a funding round targeted at big key investors, Reuters reported. The latest operation boosts the market valuation of Cruise to over 30 billion dollars. The results of the funding round were released shortly after rival TuSimple announced plans for an IPO.

"We are focused on our path to commercialization right now but the IPOs happening in the space right now are a great indication of the strength of the industry and the opportunity self-driving presents," a Cruise spokeswoman said in a statement to Reuters. In January, the startup said Microsoft Corp would join General Motors, Japan’s Honda Motor and institutional investors for a combined new equity investment of over $2 billion. Earlier this week Cruise said it planned to begin to deploy a limited number of its Origin vehicles for ride-hail services in Dubai from 2023. That will be its first overseas commercial service. "Cruise is executing a global strategy with the right partners," said Grayson Brulte, president at consultancy Brulte & Co. "At the end of the day it will come down to who can cut the best deals which long-term generate revenue and profits."

Cruise’s relationship with Walmart includes a trial delivery service in Scottsdale, Arizona, announced in November.

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