5 Year Old Startup, Momenta, Raises Another $500 Million In Series C Round
Momenta, a Chinese autonomous driving startup, has raised another $500 Million in a Series C funding round.
The transport sector has been a major contributor to the emission of toxic gases into the environment. For a long time, there was a discussion to upgrade this sector to reduce its carbon footprint. In this context, Momenta presented a way forward by presenting the idea of autonomous cars.
Momenta was established in 2016 by the founder and CEO Xudong Cao. It not only gave a theoretical concept but also presented practical measures and workable autonomous car models. The startup has been a great success since its establishment. In September, the startup secured $300 million from General Motors.
The concept of autonomous cars is becoming very popular these days. Because it is an environment-friendly approach which is very important for a safe and secure future of coming generations. However, the problem with this approach is the cost. Because autonomous cars are very costly and there is a lot of work pending to reduce the cost for autonomous cars so people can actually buy them.
Newly secured $500 million has pushed the overall worth of the company to $1 billion. Momenta adopt what it calls a two-legged strategy of supplying advanced driver assistance systems (ADAS) to auto OEMs like GM and Tier 1 suppliers like Bosch, while conducting R&D on truly unmanned vehicles, that is, Level 4 driving.
The company has a number of heavyweight strategic investors which include SAIC Motor, GM, Toyota, Mercedes Benz, and Bosch. Moreover, the institutional investors of the company include Temasek and Jack Ma’s Yunfeng Capital.
Momenta do not liaison up with different car manufacturers like its peers. Instead of choosing a more cash-intensive route, the company counts on gleaning data from a network of mass-produced vehicles powered by its solutions.
In the case of the GM deal, Momenta’s solution, which uses a mix of consumer-grade millimeter-wave radars and high-definition cameras, will be used in GM’s vehicles. However, this solution will be implemented in the vehicles being sold in China only, and not in the United States.
To battle the ghost of climate change, technology can provide robust solutions. The idea of autonomous vehicles is just one example. Artificially intelligent vehicles will be able to drive on their own. Such technologies make extensive use of data produced by the people. The use of machine learning, computer vision, and big data further empower such technological solutions. The applications of AI in the agriculture, healthcare, and education sector are some of the many examples of how technology is revolutionizing the world.