California-based electric vehicle startup Rivian announced on Friday that it had raised additional funding worth $2.5 billion from investment firm T Rowe Price. Some of the other investors who participated in the investing round included Coatue, Fidelity Management & Research, Soros Fund Management, Baron Capital Group, Amazon, hedge fund BlackRock.
Rivian (1) stated that the new funding would not, however, be bringing any more seats to its board.
The startup that employs over 2,300 people has a contract with the biggest e-commerce platform, Amazon, to build over 100k electric delivery vans. The project will begin in 2021 at Rivian’s factory, a former Mitsubishi plant in Normal, Illinois. The startup will also be launching a pickup truck and an SUV for sale next year.
Vertically integrated a connect electric platform
In 2019, Rivian received funding from US automobile manufacturer Ford Motor and e-commerce giant Amazon for $500 million and $700 million, respectively. Ford mentioned that the companies would be working together to develop electric vehicles.
RJ Scaringe, Founder & CEO at Rivian, stated, “We are focussed on the launch of our R1T, R1S, and Amazon delivery vehicles. With all three launches occurring in 2021, our teams are working hard to ensure our vehicles, supply chain, and production systems are ready for a robust production ramp-up.”
He added, “We are grateful for the strong investor support that helps enable us to focus on the execution of our products.”
The 2009 founded startup focuses on developing products, vehicles, and services related to sustainable transportation. The company has vertically integrated a connected electric platform that can have the flexibility for multiple applications, including the startup’s adventure products and Business to Business products, like the Amazon last-mile delivery vans.