TTTech Auto, a Vienna-based technology leader in automotive safety software, raised US$285 million (€250 million) from Aptiv PLC and Audi in its latest funding round. Aptiv is investing US$228 million (€200 million), while Audi is increasing its existing stake by US$57 million (€50 million).
With this latest funding round and a valuation of more than US$1 billion, TTTech Auto confirms its strong position amid a growing number of auto tech unicorns. The transaction is subject to regulatory approval and is expected to close within the next two months.
TTTech Auto’s shareholder base also includes Samsung Electronics, Infineon Technologies and the founder-led TTTech Group.
The investment will enable TTTech Auto to accelerate progress in three strategic areas: expanding its product portfolio for automotive manufacturers and its technology partners; expanding internationally in key regions; and extending its capabilities through strategic M&A and product investments.
Expanded product portfolio: TTTech Auto will apply the new funding to its flagship product, the safety software platform MotionWise, to support car manufacturers in shortening the development cycles for software defined cars, while guaranteeing safety across all car functions. As of today, about two million vehicles already drive safely based on MotionWise. The safety platform will be delivered as an open, modular, standards-based platform. Specific tools will enable car manufacturers to accelerate the software development process dramatically, from the idea stage to series production, including feature updates over-the-air, post-sales.
Growth in key regions: Expansion plans include international growth with a strong focus on Asia. In China, TTTech Auto already operates the joint venture company Technomous together with SAIC Motor Corporation, the largest Chinese car manufacturer in this increasingly important automotive market. TTTech Auto will hire talent in software and safety engineering, strategic product management, and business development in Europe, North America and Asia.
Bolster leadership capabilities in safety technology: TTTech Auto will continue its M&A strategy by acquiring complementary products, technologies, and services to meet the ever-growing safety needs of car manufacturers as the industry reaches new levels of automation on its path to autonomous driving and the complexity of software-driven car functions increases.
Aptiv, Audi and TTTech Auto have a shared track record: The three companies worked together on Audi‘s zFAS central driver assistance controller for automated driving (earlier post). The fruitful collaboration on this platform was honored with the Automotive News PACE Award in 2019.