Archer closes $230 million round from United, Stellantis and other investors

US advanced air mobility developer Archer Aviation has announced the closing of a $230 Private Investment in Public Equity (PIPE) funding round that is set to strengthen the capitalization of the company as its Midnight eVTOL approaches certification stage. 

Of the $230 million, $220 million has already been confirmed and the remaining $10 million is awaiting the approval of Stellantis shareholders, which is expected to happen later this year. 

A PIPE round allows investors to purchase equity in a listed company at prices below market value.  

Among those investing in Archer’s latest round are United Airlines, which had already invested in two of the startup’s previous rounds, and carmaker Stellantis, which is Archer’s industrial partner, plus several other institutional investors. 

The additional cash brings the total amount capital raised by Archer north of $1.5 billion. According to the company itself, this sum positions it as one of the best capitalized companies in the advanced air mobility space. 

As part of this deal, Stellantis will also commit labor resources and capital expenditures to Archer’s industrial program, which includes the start of serial production of the Midnight eVTOL at a greenfield factory in Covington, Georgia. In exchange, Stellantis will have the right to access up to $400 million worth of Archer stock at future prices. 

The post Archer closes $230 million round from United, Stellantis and other investors appeared first on AeroTime.

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