MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Peloton Technology, a connected and automated vehicle technology company dedicated to improving the safety and efficiency of freight transportation, today announced the closing of a $60 million Series B funding round. Omnitracs, a global pioneer of fleet management solutions, led the round, which also included existing investors Intel Capital, DENSO International America, BP Ventures, Lockheed Martin, Nokia Growth Partners, UPS Strategic Enterprise Fund, Volvo Group, Sand Hill Angels, Band of Angels and Birchmere Ventures along with new investors B37 Ventures, Mitsui USA, Okaya, Schlumberger, US Venture and Breakthrough Fuel.
“We are excited to be working with a growing group of leading companies from across the industry as well as forward-looking state and federal regulators to bring pragmatic, driver-assistive truck automation solutions to market,” said Josh Switkes, co-founder and CEO of Peloton. “This new round of global strategic investment bolsters Peloton’s position as the leading provider of near-term automated truck technology in North America and soon beyond.”
Commercial Truck Fleet Focus
Peloton has raised a total of $78 million since inception. Series B funds will fuel Peloton’s growth plans, including the rollout of the world’s first commercial two-truck driver-assistive platooning system later in 2017, as well as development of more advanced automation solutions.
Peloton’s flagship platooning system empowers drivers and trucking fleets to address three major industry challenges of safety, fuel savings and operational efficiency by delivering new tools, capabilities and data.
“Peloton has taken an innovative and disciplined approach in combining vehicle connectivity and driver-assistive automation technologies to offer immediate value to trucking fleets,” said Larry Burns, Peloton board member and former vice president of research and development and strategic planning at General Motors. “Peloton’s truck platooning product helps fleets and drivers to improve safety, fuel efficiency and operations today while setting the stage for transformational trucking improvements in the future.”
Several US-based Fortune 500 fleets plan to trial the system within the next year. At the same time, Peloton and Series B lead investor Omnitracs will expand cross-fleet platooning opportunities by integrating the system with the Omnitracs Intelligent Vehicle Gateway telematics platform and developing new joint telematics solutions.
“The transportation industry is going through a massive change,” said Omnitracs CEO John Graham. “Macro-level trends like the Internet of Things, cognitive applications, faster delivery of goods and new levels of customer service are at the core of our new partnership with Peloton. We want to expand the possibilities of truck automation on the nation’s highways and set new standards in integrated dispatch, tracking and routing as well as driver-facing applications to maximize and optimize the orchestration of both same-fleet and cross-fleet platooning.”
Vehicle and Technology Industry Collaboration
Boosted by the new investment, Peloton is accelerating vehicle integration projects with several truck OEMs, including Volvo Trucks North America, a part of investor Volvo Group, as well as Tier 1 brake system and connected-vehicle suppliers. The Peloton investor mix includes a variety of leading global companies, enabling Peloton to collaborate extensively to bring its solutions to international markets. Intel, a co-leader on Peloton’s 2015 Series A round, announced in November 2016 that it will invest $250M in automated driving solutions.
“Making cars and trucks safer and more efficient with increasing levels of active safety equipment is critically important to the global economy,” said Kathy Winter, vice president, Automated Driving Division, Intel. “Advanced driver assistance solutions such as Peloton’s, that are based on scalable, secure computing platforms are a key element on the path to fully autonomous driving.”
About Peloton Technology
Peloton is a connected and automated vehicle technology company dedicated to improving the safety and efficiency of U.S. and global freight transportation. Backed by ten Fortune Global 500 companies, Silicon Valley-based Peloton partners with customers to deliver innovative tools that save fuel, avoid crashes, and improve operational insight through connectivity, automation and advanced data analytics. Peloton’s flagship driver-assistive platooning system links the active safety systems of pairs of trucks, and connects them to a cloud-based Network Operations Center that limits platooning to appropriate roads and conditions. Peloton solutions also improve the safety of individual trucks by requiring best-in-class forward collision avoidance systems and other safety features that are active both in and out of platoon. For more information, visit www.peloton-tech.com and follow Peloton on Twitter @pelotontech.
About Omnitracs, LLC
Omnitracs, LLC is a global pioneer of fleet management, routing and predictive analytics solutions for private and for-hire fleets. Omnitracs’ nearly 1,000 employees deliver software-as-a-service-based solutions to help more than 50,000 private and for-hire fleet customers manage nearly 1,500,000 mobile assets in more than 70 countries. The company pioneered the use of commercial vehicle telematics over 25 years ago and serves today as a powerhouse of innovative, intuitive technologies. Omnitracs transforms the transportation industry through technology and insight, featuring best-in-class solutions for compliance, safety and security, productivity, telematics and tracking, transportation management (TMS), planning and delivery, data and analytics, and professional services. Visit http://www.omnitracs.com for more information.
About Intel Capital
Intel Capital, Intel’s global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, mobility, consumer Internet, digital media and semiconductor manufacturing. Since 1991, Intel Capital has invested more than US$11.4 billion in over 1,400 companies in 57 countries. In that timeframe, 211 portfolio companies have gone public on various exchanges around the world, and 366 were acquired or participated in a merger. In 2014, Intel Capital invested $359 million in 125 investments, including 59 new deals. For more information on what makes Intel Capital one of the world’s most powerful venture capital firms, visit www.intelcapital.com or follow @Intelcapital.
About DENSO in North America
DENSO is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. With its North American headquarters located in Southfield, Michigan, DENSO employs more than 23,000 people at 30 consolidated companies and affiliates across the North American region. Of these, 28 are manufacturing facilities located in the United States, Canada and Mexico. In the United States alone, DENSO employs more than 15,000 people in Alabama, Arkansas, California, Iowa, Georgia, Kentucky, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Texas. DENSO’s North American consolidated sales totaled US$9.9 billion for the fiscal year ending March 31, 2016. For more information, go to www.densocorp-na.com.
About BP Ventures
BP Ventures identifies and makes strategic investments in private, high growth, game-changing technology companies, accelerating cutting edge innovations across the entire energy spectrum. The Investment portfolio is primarily focused on emerging technologies in oil and gas exploration and production and downstream conversion processes. BP Ventures also partners with entrepreneurial companies specialising in biotech, water, advanced materials, and digital technology. To learn more, please visit: bp.com/ventures.
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin is a global security and aerospace company that employs approximately 112,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s net sales for 2014 were $45.6 billion. Visit www.lockheedmartin.com for more information.
About Nokia Growth Partners
NGP is an independent fund sponsored solely by Nokia investing in companies that are changing the face of mobility. NGP offers industry expertise, capital and an extensive network, enabling entrepreneurs to build disruptive, industry-changing companies and take them to the global market. With offices in the US, Europe, India and China, NGP extends the reach of companies making their products and services local everywhere. Visit http://www.nokiagrowthpartners.com for more information.
About UPS Strategic Enterprise Fund
The UPS Strategic Enterprise Fund is the private equity strategic investment arm of UPS (NYSE: UPS). Established in 1997, the Fund is a corporate venture capital group that focuses on innovation, developing critical partnerships and gaining knowledge returns from its investments in technology companies and emerging market spaces. Visit www.ups.com for more information.
About the Volvo Group and Volvo Group Venture Capital
The Volvo Group is one of the world’s leading manufacturers of trucks, buses, construction equipment and marine and industrial engines. The Group also provides complete solutions for financing and service. The Volvo Group, which employs about 100,000 people, has production facilities in 19 countries and sells its products in more than 190 markets. In 2014, the Volvo Group’s sales amounted to about $38.2 billion. The Volvo Group is a publicly-held company headquartered in Gothenburg, Sweden. Volvo shares are listed on Nasdaq Stockholm and are traded OTC in the U.S. Visit www.volvogroup.com.
Volvo Group Venture Capital is part of the Volvo Group. With the objective of accelerating new business growth, Volvo Group Venture Capital invests in companies driving service orientation and product differentiation in the transportation industry.
About Sand Hill Angels
Sand Hill Angels is a group of Silicon Valley accredited investors passionate about entrepreneurship and the commercialization of disruptive technologies and business models. With experience spanning all aspects of growing successful companies – from the formative stage through management of multi-billion dollar enterprises – Sand Hill Angels provides expertise and assistance to these fledging companies. The investment space includes Internet, Information Technology, Clean Tech, Consumer, and Life Sciences businesses. The Sand Hill Angel operating model is to work openly and collaboratively with venture capital funds, other angel organizations, and the Bay Area ecosystem that fosters the growth of technology start-ups. For additional information, visit www.sandhillangels.com.
About The Band of Angels
The Band of Angels is Silicon Valley’s oldest seed funding organization. A formal group of 150 former and current high tech executives who invest their time and money into cutting edge startup companies, the Band has seeded over 277 companies with 55 profitable M&A exits and 10 Nasdaq IPOs. Visit www.bandangels.com for more information.
About Birchmere Ventures
Birchmere Ventures, a seed/early stage venture fund with offices in Pittsburgh and San Francisco, partners with entrepreneurs in building innovative companies that make a positive impact while also delivering strong returns for our investors. With $250m under management, we have helped our portfolio companies achieve a cumulative $15b in market valuation. Visit birchmerevc.com for more information.
About B37 Ventures
B37 Ventures is a Silicon Valley venture capital firm that derives returns from a proprietary platform in which startups and multinational corporations exchange innovation and scale. B37 is able to validate product-market fit and curate scalability through the global reach of its industry-diverse corporate investors. Along with the US market, B37’s investors have presence in more than 50 countries and operate +3 million points of sale, 250 manufacturing plants, run 60,000 routes, employ greater than 200,000 people, and have combined annual revenues in the tens of billions of dollars. Their products and services are recognized brands regionally and globally. Visit www.B37.vc for more information.
About Mitsui USA
Mitsui & Co. (U.S.A.), Inc. (“Mitsui USA”) was incorporated in 1966 in New York as a wholly owned subsidiary of Mitsui & Co., Ltd., Tokyo, Japan, one of the most diversified and comprehensive trading, investment, and service enterprises in the world. Mitsui & Co. pursues “360° business innovation” that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Integrated Transportation Systems, Chemicals, Energy, Food, Food & Retail Management, Healthcare & Service, Consumer Business, IT & Communication, and Corporate Development Business. More information on Mitsui USA may be found at www.mitsui.com/us.
Since its founding in 1669 in Nagoya, Japan, and throughout its 348-year-history, Okaya has evolved into a global trading company, engaged in a broad range of businesses including domestic and overseas transactions in iron and steel, metals, machinery, tools, electronics, piping components and housing facilities, construction development, chemicals, foods, and many other products.
As part of the Electrical and Electronic products segment, Okaya handles an extensive range of products from semiconductors and electronic components to software and system products. In the more advanced fields of electronics, Okaya is involved in the marketing of mechanism that effectively utilize data, which is gaining prominence in a wide range of fields. Being involved in cutting-edge technology such as automated operation and next-generation manufacturing from the development stage. For additional company and product information, please visit us at http://www.okaya.co.jp/en/index.html.
About US Venture and Breakthrough Fuel
U.S. Venture, Inc. For more than 60 years, U.S. Venture, Inc. has been recognized as an innovative leader in the distribution of petroleum and renewable energy products, lubricants, and tires and parts for the automotive aftermarket. Guided by its company vision, “To be the very best value-adding distributor of products that vehicles consume in North America,” they deliver unconventional, creative solutions that give their customers a competitive edge. Headquartered in Appleton, Wisconsin, the company’s business divisions are U.S. Oil, U.S. AutoForce®, U.S. Lubricants and U.S. Gain.