Aptiv, Audi back a $285 million investment in Austria-based autonomous driving software tech startup TTTech Auto

TTTech Auto, a Vienna, Austria-based tech startup that provides software platforms for automated driving, has raised $285 million in funding co-led by Auto technology supplier Aptiv PLC and Volkswagen AG’s Audi brand.

The latest round gives the four-year-old startup a valuation of $1 billion, the companies said. As part of the investment, Aptiv will invest $228 million in TTTech Auto, while Audi is investing $57 million. The transaction is subject to regulatory approval and is expected to close within the next two months, TTTech Auto said on its website.

TTTech Auto said that it will use the new cash infusion to expand its product portfolio for automotive manufacturers and its technology partners, expand internationally in key regions, and extend its capabilities through strategic M&A and product investments.

TTTech Auto was founded in 2018 by aerospace firm TTTech Group, South Korean technology company Samsung, Audi, and chipmaker Infineon. The startup designs software that auto manufacturers can use to manage data flowing from sensors and safety systems used to automate driving. The company’s Motionwise software also helps engineers develop new automated driving and safety software more quickly.

TTTech Auto’s MotionWise is a series-proven safety software platform for automated driving. It acts as the safety mastermind for automated driving within a vehicle architecture, handling the high complexity of such systems.

Commenting on the investment, TTTech Auto CEO Georg Kopetz said, “The next few years will be critical for the entire industry in the transition from automation to semi-autonomous driving and the software-defined vehicle.”

He also added, “With MotionWise, we are supporting this industry transformation as an independent company with the most advanced safety software platform on the market. This funding will strengthen our position as a leader in automotive safety software and significantly increase our global footprint.”

With the fresh capital infusion, Kopetz said TTTech Auto plans to expand in Asia, look for potential acquisitions and invest in the development of the Motionwise software, which is currently used in about 2 million vehicles. “We want to provide aerospace safety at automotive cost,” Kopetz said in an interview.

Aptiv, with annual revenue of $15 billion, is working to expand its business by supplying hardware and software for electric vehicles and automated driving systems. Aptiv, Audi, and TTTech Auto collaborated to develop the central driver assistance controller for automated driving used in Audi vehicles.

“Since 2017, Aptiv and TTTech Auto together have successfully deployed safety software systems in vehicles across various brands of the Volkswagen group,” said Kevin Clark, President and CEO, Aptiv about the investment. “TTTech Auto’s expertise in providing end-to-end real-time behavior for safety-critical systems complements our software platform to accelerate development, integration, testing, and validation. This investment further advances our software strategy, and adds to Aptiv’s full-stack capabilities, enabling customers to democratize advanced safety systems faster and at a lower cost.”

Markus Duesmann, CEO, AUDI AG added, “Audi and TTTech Auto have a long-standing strategic partnership in the field of developing automated driving technology. We are now looking forward to expanding this successful cooperation as TTTech Auto joins forces with Aptiv to enhance its capabilities and accelerate its automated driving technology commercialization. With the Volkswagen Group’s software company CARIAD, Audi is driving the introduction of that technology forward at full speed and TTTech Auto is an important partner along this path.”