Urban air mobility (UAM) company Volocopter has raised US$170 million in Series E financing, which will help the company certify its electric air taxi and logistics service, with commercial launch “within the next few years”.
The cash was raised as part of the initial signing of Volocopter’s Series E funding round led by South Korean investor WP Investment, at a pre-money valuation of US$1.7 billion. Funds have been received from new and existing investors.
German-based Volocopter, which was founded in 2011, is developing new and sustainable mobility options for cities around the world. It’s electric vertical take-off and landing (eVTOL) aircraft will offer passengers, as part of the VoloCity and VoloConnect services, and goods through the VoloDrone service, swift, secure, and emission-free connections to their destinations, supported by VoloIQ, the UAM ecosystem’s software platform.
The company is the first and only eVTOL business to receive Design Organisation Approval (DOA) from the European Union Aviation Safety Agency (EASA) and has committed to launching commercial services in cities like Singapore, Rome, and Paris.
The VoloDrone is an uncrewed, fully electric utility drone capable of carrying a payload of up to 200 kg and travelling up to 40 km. In the logistics environment, VoloDrone will be able to deliver packages safely, efficiently, and on time, according to the company.
Florian Reuter, CEO of Volocopter, said, “This funding round is a testament to Volocopter’s leading position in what is a highly attractive emerging market. We continue to make significant technical and commercial progress as we work toward bringing urban air mobility to life at scale in cities worldwide.”
WP Investment based in Seoul, Republic of Korea, is a leading and new investor for Volocopter in this funding round. Following this announcement, Volocopter and WP Investment will enter a strategic partnership by creating a joint venture that will soon bring urban air mobility to South Korea’s cities.
“We are confident that Volocopter will be among the first to bring UAM to cities globally, since seeing its aircraft fly in Seoul last year. As a leader in ESG investment, we are excited to empower city sustainability through Volocopter,” added Dr Lei Wang, Chairman of WP Investment.
New investors in Volocopter include WP Investment and Honeywell, amongst others. Many existing investors including Atlantia, Whysol, and btov Partners, have also reinvested in this round. The company has raised US$579 million from investors to date.
“Our successful first signing of Series E brings phenomenal new investors on board, with further in the due diligence stage. This private funding round allows us to stay focused on our mission to bring sustainable urban air mobility to life,” said Stefan Klocke, Chairman of Volocopter’s Advisory Board. “We have never been in a stronger position: we are financially diversified, certification of the aircraft is within reach, and we are demonstrating our advanced capabilities by public flights and strong joint-ventures across the world.”
Volocopter also recently announced that it has entered a financing agreement in principle with Aviation Capital Group (ACG) to shape the sale and leasing of Volocopter aircraft for up to US$1 billion. Once aircraft certification has been achieved, this agreement will allow Volocopter to offer its operating entities and customers worldwide attractive leasing options, a key to rapidly scaling the business in the future.
