TTTech Auto, an industry-leading Austrian technology company that specializes in automotive safety software has raised $285 Mn from Audi and Aptiv PLC in the latest funding round.
While Aptiv is currently investing around $228 Mn, Audi is increasing its current stake by $57 Mn. With an evaluation of over $1 billion and the latest funding round, TTTech Auto has asserted its dominance in a market wherein multiple auto tech unicorns are emerging.
As of now, the transaction is awaiting regulatory approval and is likely to close in the next couple of months.
Aptiv will join TTTech Auto’s stellar lineup of blue-chip shareholders which features Samsung Electronics, Audi, and Infineon Technologies. It is a testament to the company’s strong foothold driven by its safety software platforms within the emerging software mobility sphere for applications in the automotive sector.
Kevin Clark, CEO, and President of Aptiv said that TTTech Auto and Aptiv have successfully implemented software systems in vehicles for multiple brands under the Volkswagen umbrella. He also said that the investment will provide an impetus to the company’s software strategy and also get Aptiv’s full-stack capabilities onboard. This will allow customers to democratize safety systems more rapidly at lower costs.
How does this investment help TTTech Auto?
The recent injection of capital will allow TTTech Auto to fuel the progress in three core areas. These include expanding new regions across the globe, widening its capabilities via product investments and mergers and acquisitions, and expanding its product portfolio.
Expanding current product offerings and capabilities
TTTech Auto will use the latest funding to optimize its flagship product MotionWise. MotionWise is a safety software that enables automotive manufacturers to reduce their development cycle for software-powered vehicles.
At present, around 2 million cars drive safely with MotionWise. The company is planning to deliver the software as a modular, open, and standards-based solution.
TTTech Auto has no intention to slow down its M&A strategy by acquiring complementary services, technologies, and products. This is driven by the increasing safety requirements car manufacturers need to comply with as the automotive industry enters the automation era.
Plans to increase global footprint
Over the course of the new few years, TTTech Auto is expected to create thousands of job opportunities in the global market. As the company eyes expanding its footprint, a lot of emphases will be on Asia. TTTech Auto will hire new resources for strategic product management, business development, and safety engineering in North America, Asia, and Europe.