Québec City-based LeddarTech, which builds systems that help autonomous vehicles understand their surroundings, has secured $140 million USD in Series D funding and debt.
LeddarTech’s financing consists of $116 million USD in equity Series D capital led by FS Investors, and a $24 million debt facility from Desjardins Group. The Series D round was first reported by La Presse. LeddarTech described this $116 million USD in Series D funding as its “first close,” and declined to disclose how much the company ultimately aims to raise as part of the round when reached for comment.
LeddarTech plans to use the funding to support the development and commercialization of its sensor fusion and perception solutions.
LeddarTech said the fresh capital will support the development and commercialization of its proprietary sensor fusion and perception automotive solutions. The Canadian firm also plans to use this funding to bolster its engineering capabilities as it looks to meet demand from global original equipment manufacturers (OEMs) and automotive customers.
Founded in 2007, LeddarTech builds environmental sensing solutions for autonomous vehicles and advanced driver assistance systems. The company’s products include LeddarVision, a raw-data sensor fusion and perception platform that generates 3D models to support various levels of autonomous vehicles.
“The success of this round is a testament to the growth and industry recognition LeddarTech has achieved,” said LeddarTech CEO Charles Boulanger, adding that FS Investors brings “vast experience and expertise in the deep tech sector.”
The round saw participation from Investissement Québec, BDC Capital, Go Capital, funds managed by Fidelity Investments Canada, Fonds de solidarité FTQ, Export Development Canada, ams OSRAM, Desjardins Capital, UI Investissement, Cowen Investment II, and other LeddarTech management. LeddarTech said the round brings the company’s total funding to date to approximately $250 million USD.
“An extensive due diligence process coupled with strong customer validation confirmed that LeddarTech’s unique solution is the best positioned in the market to unlock mass adoption of [advanced driver-assistance systems (ADAS)] and [autonomous driving] by breaking typical software dependency on hardware in sensing,” said Nick Stone, founder and partner of FS Investors.
LeddarTech claims the company is “responsible for several innovations in cutting-edge automotive and mobility remote-sensing applications,” and has over 100 patented and patent-pending technologies that enhance ADAS and autonomous driving capabilities.
In 2020, Boulanger told The Financial Post that LeddarTech was “burning cash” in its quest to compete amid an increasingly crowded and cash-intensive autonomous vehicle market.
Around this time last year, LeddarTech told La Presse that it was considering going public. Earlier today, unnamed sources reportedly told La Presse that LeddarTech’s Series D could be one of its last steps before an initial public offering.
Feature image from Glassdoor.