Transportation

Archer Raises $430M to Develop Hybrid Aircraft

Ken Metral

13 Dec 2024 — 1 min read

Credit: Archer Avation, Inc.

Archer Aviation (NYSE: ACHR), a leading air-taxi maker, announced on Thursday that it has raised $430 million in fresh capital. The funding, which includes contributions from existing investors United Airlines and Stellantis, as well as new backers Wellington Management and Abu Dhabi’s 2PointZero, comes through an equity offering.

Key Collaboration: Archer and Anduril Industries

Part of the funds will go toward developing a hybrid aircraft in collaboration with Anduril Industries, a defense tech company founded by Palmer Luckey. The goal is to create an advanced vertical takeoff and landing (eVTOL) aircraft targeting a Pentagon “program of record”, signaling government-backed acquisition potential.

While details on the new aircraft's specifications, entry-into-service date, or investment size were not disclosed, Archer CEO Adam Goldstein emphasized the strategic importance:

“With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale.”

Industry Challenges and Positioning

The eVTOL sector faces significant financial pressures due to technological and regulatory hurdles. However, analysts note that Archer is one of the best-positioned players to secure certification and successfully enter the market.

Financial Health and Outlook

Archer ended Q3 with $502 million in cash and cash equivalents, and this latest funding brings the company’s total capital raised to nearly $2 billion. Archer stated that the $430M raise eliminates any near-term financing needs, strengthening its ability to focus on product development.

Beyond Defense: Commercial eVTOL

Alongside the hybrid aircraft for defense, Archer continues to develop its five-seater commercial eVTOL aircraft for urban air mobility, positioning itself as a leader in the emerging air-taxi market.

The Final Word

Despite challenges in the eVTOL industry, Archer Aviation’s partnership with Anduril and its strong financial backing signal confidence in its ability to deliver next-generation aerospace solutions.

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