- DeepRoute.ai, a Chinese smartdriving startup, raises $100 million in its latest funding round.
- The investment underscores the rapid growth of the smart driving market in China.
What happened
On Nov 4, 2024, Chinese autonomous driving technology developer DeepRoute.ai has raised $100 million in financing from an automaker to strengthen its development of smart driving solutions. DeepRoute.ai aims to drive mass adoption of its system in cars before Tesla (TSLA.O) does. The infusion of money highlights the growing demand for self-driving technology, especially as interest in smart cars surges around the world. The Shenzhen, China-based startup has positioned itself as a key player in the competitive landscape of smart driving technology, striving to innovate in this fast-moving industry.
DeepRoute.ai’s existing backers include e-commerce giant Alibaba, while the sole investor in this round of funding is a Chinese automaker. The company declined to name it and did not disclose the valuation of the company after the funding.
Zhou Lijun, CEO of DeepRoute.ai, stated that the company expects nearly 200,000 cars on Chinese roads to be equipped with its advanced driver assistance system by the end of 2025, up from about 20,000 now.
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What it’s important
The investment highlights the growing demand for smart driving technology in China. In other words, the significance of this round of financing is not limited to DeepRoute.ai; it also reflects the development trajectory of China’s smart driving market. As the global demand for autonomous vehicles continues to grow, China is emerging as a key player.
DeepRoute.ai aims to use the funding to strengthen research and development efforts, expand its team, and improve technology to ensure safety and reliability. This momentum aligns with other startups such as Momenta, which focuses on high-definition maps and recently raised $500 million to expand its capabilities. This indicates a strong investment trend in China’s smart driving sector. In addition, Pony.ai, a company focused on developing smart driving solutions, recently secured a substantial investment to enhance its testing and operational capabilities, further underscoring the trend of significant capital inflows into the sector.
DeepRoute.ai’s $100 million funding round marks a pivotal moment, not only laying the foundation for the company’s future success but also reflecting broader trends in the smart driving industry—namely, the potential of intelligent driving technology to transform the region in China.
