Japanese autonomous trucking start-up raises $24m
T2, a Japanese autonomous driving start-up that focuses on trucking, has raised JPY 3.5bn (USD 24.1m) in Series A funding from a combination of financial and strategic investors.
Participants include Mitsui Sumitomo Insurance, Sumitomo Mitsui Trust Bank, and Kiyo Capital Management as well as gas station operator Usami Koyu Corporation, gas supplier Toho Acetylene, logistics providers Mitsui-Soko Logistics and Daiwa Logistics, financial leasing player JA Mitsui Leasing, and telecom operator KDDI Corporation.
Mitsui & Co, deep learning-focused start-up Preferred Networks, and Mitsubishi Estate are also identified as shareholders in a statement. T2 raised JPY 1.25bn in pre-Series A funding in June, but it did not give the names of the investors.
Founded in August 2022, the company is developing level-four (L4) self-driving technology where the vehicle has full autonomy in certain environments, but the option of human override remains. Initial tests involving passenger cars took place in 2020 experimentation while trucks began a year later.
T2 was formally established on the completion of a test vehicle for trucking scenarios. In April, an autonomous truck demonstration was launched on public highways. The new funding will be used to accelerate L4 development and form collaborations with representatives from logistics, finance, telecommunications, chemicals, and retail to apply the technology to different industries.
The company wants to roll out services in the Kanto and Kansai regions in 2025 and achieve nationwide coverage by 2030.
“The ‘2024 problem’ has become a serious issue for Japan’s logistics industry and we expect that T2’s autonomous driving technology – and the network of companies involved in the project – will help to solve it,” said Yasushi Anashige, a member of the impact equity investment department at Sumitomo Mitsui Trust Bank.
The “2024 problem” refers to logistical delays expected to arise from shorter shifts and longer rest periods for truck drivers as well as caps on overtime. Nomura Research Institute estimated these regulations could reduce the volume of transportable cargo by 35% nationwide by 2030. NX Logistics Research Institute & Consulting projected a 14% fall by 2025 and 34% by 2030.
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