After receiving a $100 million financing infusion today, an Israeli transport tech startup is preparing to boost up operations in London, bringing its worth to $1.3 billion.
Optibus, which provides AI technology to transportation companies to automate and improve route planning, has raised $1 billion in additional investment, making it the first public transportation startup to achieve unicorn status.
London is primed for solid expansion, according to boss Amos Hagiag, as the city prepares to shift to electric buses in the coming decade.
“London has relatively few electric buses, fewer than 10%,” Hagiag told City AM, “but it’s fast expanding to a hundred percent over the next ten years.”
“Electrification will become a significant issue in the next ten years, and there is already a charging capacity problem, so businesses must plan ahead and ensure that drivers are charging at the appropriate time and in the right place.”
Optibus’ system requires vehicles to charge at certain locations and times, which Hagiag believes will become increasingly crucial as charging capacity becomes more scarce.
Last year, London Mayor Sadiq Khan declared that all new TfL buses in the city will be zero-emissions, with a goal of achieving a 100 percent zero-emissions bus fleet by 2034, three years ahead of schedule.
Optibus, whose customers include Stagecoach and First Group, currently has a 100-strong staff in London and has announced intentions to expand its product offering across the UK.
Optibus has expanded to over 1000 cities worldwide since its beginning in 2014, and the company is now looking to expand into countries such as France, Germany, and the Nordics in the next year.
With backing from Tencent, as well as investors such as Insight Partners, Bessemer Venture Partners, and Verizon Ventures, the firm’s total cash raised to $260 million today.
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