(Yicai) May 15 -- KargoBot, a Chinese autonomous driving freight startup previously owned and now backed by ride-hailing giant Didi Chuxing, has bagged nearly CNY300 million (USD41.6 million) in a Series A+ financing round.

Several local government-backed investment institutions, including Ordos State-Owned Assets Investment Holding Group, Shenzhen Capital Group, and Orinno Capital, took part in the fundraiser, Beijing-based KargoBot announced yesterday. An investment fund affiliated with heavy truck manufacturer Shanxi Automobile Group also participated.

The proceeds of the financing round will be used to accelerate the commercialization of Level 4 autonomous freight operation, KargoBot noted.

Last June, KargoBot secured CNY600 million in its Series A financing round, with Ordos State-Owned Assets Investment again participating. Other investors included container truck manufacturer CIMC Vehicle Group and autonomous driving chip provider Horizon AI.

Established in 2021, KargoBot was incubated by the self-driving division of Didi before being spun off as an independent firm. It uses a hybrid formation model for logistics transportation, where a human driver operates a lead vehicle that guides several autonomous trucks, aiming to address truck driver shortages and aging workforce challenges.

KargoBot operates in seven Chinese cities in the north and northwest of the country, including Ordos in Inner Mongolia Autonomous Region. It has accumulated an operating mileage of 20 million kilometers and has transported 200 million ton-km of bulk goods as of last month, according to the company.

Ordos has a vast expanse and is rich in natural resources, making it ideal for conducting autonomous freight transport due to the high density of bulk cargo, said Liu Wenqing, chairman of Ordos State-Owned Assets Investment.

"KargoBot has achieved significant localized operational results in Ordos," Liu noted. "We will continue to assist it in leveraging its technological innovation to promote the transformation and upgrading of the regional freight industry, striving to make the city a benchmark for autonomous driving in the country."

Editor: Martin Kadiev