Archer Aviation is an electric air taxi manufacturer that aims to promote sustainable air transportation. It recently announced that it has completed a $215 million equity financing round, with investors including aircraft manufacturer Boeing, United Airlines and ARK Investment Management. Boeing’s investment is to support the integration of autonomous technologies from its subsidiary Wisk into future Archer aircraft models. The fresh capital will help Archer accelerate product R&D, expand production capacity and get certification from regulators. The air taxi market has seen surging investments lately, with players like Joby and Lilium going public via SPAC deals. The future looks promising for zero-emission flying vehicles to resolve traffic congestion in cities.
Boeing and archer aviation resolve disputes and start collaboration
Archer Aviation was involved in some lawsuits previously with Boeing’s air taxi department Wisk over alleged patent infringements. As part of the new investment agreement, Archer will issue warrants to Wisk worth up to $70 million to settle the litigation. The two companies will also cooperate on developing autonomous technologies going forward.
Major investors in this investment round include Boeing and United Airlines
In addition to Boeing and United Airlines, other participants in this $215 million financing round are Stellantis, a leading automaker group, and ARK Investment Management, a well-known investment manager focused on disruptive innovation and technology.
Fresh capital will speed up archer’s R&D and production capacity expansion
Archer Aviation is developing electric vertical takeoff and landing (eVTOL) aircraft tailored for urban air mobility. The company said the new capital infusion will facilitate R&D on its vehicles, equipment purchases to scale up manufacturing, and helping its commercialization plans to launch air taxi services by 2025.
Increasing competition in the promising air taxi market
Major players in the fledging air taxi industry include Joby Aviation and Lilium, both went public in the US stock market recently via mergers with SPACs at multibillion dollar valuations. There has been rising investment activities in this innovative sector due to its growth prospects amid traffic congestion and sustainability trends.
Archer Aviation obtains strategic investments from aerospace giant Boeing and United Airlines totaling $215 million. The fresh capital will strengthen Archer’s R&D capabilities and production capacity to compete in the burgeoning air taxi market, where players race to develop zero-emission vehicles for urban transportation.