Hyundai Motor is considering increasing its stake or acquiring the South Korean non-lidar company outright. standalone mobile platform 42dotthe latest signal of his growing interest in the fast-growing space.
A 42dot spokesperson told TechCrunch that the startup is in talks with Hyundai Motor, but warned that terms, including the size of the stake and the valuation of the deal, have yet to be announced. Hyundai Motor did not immediately respond to requests for comment.
Hyundai currently owns a 20.4% stake in the three-year-old startup, while 42dot co-founder and CEO Chang-Hyun Sung, who interestingly also leads the Transportation as a Service (TaaS) team at Hyundai Motor, owns 36. 19% shares as of December 2021, according to normative documentation 42dot. The rest are owned by venture capital firms and strategic investors, including LG Electronics, SK Telecom, Lotte Rental, CJ Logistics and LIG Nex1.
Ongoing discussions indicate an accelerating effort by Hyundai Motor to strengthen its autonomous driving technology that meets the requirements Korean automaker’s grand plan to invest $79 billion (95.5 trillion won) by 2030 in autonomous driving software technology and electric vehicle-related businesses. Hyundai Motor has said it aims to capture 7% of the global electric vehicle market by 2030. designed $9.2 billion (12 trillion won) investment in connectivity and autonomous driving software.
The news comes almost nine months after 42dot raised $88.5M in a Series A funding round at a valuation of around $425M to accelerate its TaaS service and Urban Mobility Operating System (UMOS).
South Korean local media Korean Economic Daily first informed News reports citing anonymous sources that Hyundai is in talks to invest at least 400 billion won (~$306.4 million) in 42dot. Hyundai approached 42dot for the acquisition in June, according to the newspaper. The proposed deal could be completed this month, the paper said.
Founded in 2019 by former Apple, Microsoft and Naver employee Song, 42dot has developed Akit, a self-driving software and hardware solution, and TAP, an autonomous mobility and logistics platform that offers a range of services such as taxi booking, fleet management, responsive on demand transport, smart logistics and more.
Credit: techcrunch.com /