(Reuters) – Air-taxi maker Archer Aviation said on Tuesday it has raised $300 million in a funding round that consisted of institutional investors including accounts managed by BlackRock.
Archer expects the capital raise to help it accelerate the development of its hybrid aircraft platform and further reinforce its balance sheet.
“We are raising additional capital to help us invest in critical capabilities like composites and batteries to help enable us to capture this opportunity and more,” CEO Adam Goldstein said.
The additional capital brings Archer’s total liquidity to about $1 billion currently, the company said on Tuesday.
The company’s statement did not disclose the valuation at which the new capital was raised.
The latest fundraising comes amid a cash crunch in the electric vertical takeoff and landing (eVTOL) industry, driven by technological and regulatory challenges. However, analysts believe Archer is well positioned to endure these difficulties and achieve certification.
The company previously raised $430 million in December through an equity offering that had defense technology company Anduril and existing investors such as United Airlines and Stellantis, as well as new backers such as Wellington Management and Abu Dhabi investment holding company 2PointZero, participate in the fundraising.
Santa Clara, California-based Archer said in its preliminary fourth-quarter results that its adjusted operating expenses were in line with its forecast range of $95 million to $110 million.
It also said it does not expect its total adjusted operating expenses for the first quarter of 2025 to materially increase above its Q4 guided range.
(Reporting by Abhinav Parmar in Bengaluru; Editing by Pooja Desai)
