Beta Technologies has raised $318 million in fresh capital through a Series C funding round to support efforts to bring its Alia electric aircraft to market. The Vermont-based company announced the closing of the round on October 31, confirming that it has now raised more than $1 billion in equity capital.
The latest raise was led by Qatar Investment Authority (QIA) and was backed by Fidelity Management & Research Company and TPG Rise Climate, as well as medical group United Technologies, which holds purchase agreements for the Alia aircraft. According to Beta, the Series C round was priced at an increased valuation compared to earlier equity capital raises and was oversubscribed.
Beta is developing both VTOL and conventional takeoff and landing versions of the Alia, designated respectively as the Alia 250 and CX300 models. The company said the new funds will be used for production, type certification and commercialization of the aircraft, electric propulsion systems and charging infrastructure.
The company is already generating revenues from sales of its grid-tied, universal charging cube systems for aircraft, which are also being used by other manufacturers, such as Archer Aviation. It has also drawn support from U.S. military contracts.
“At QIA, we seek out companies that are well-positioned to become category leaders by addressing critical challenges,” said Mohammed Al-Sowaidi, the sovereign wealth fund’s chief investment officer for the Americas. “Beta is a leader in the electric aviation market and our participation in this funding round is fully aligned with QIA’s efforts to invest in the companies that are making the energy transition a reality.”
Alia Production Ramps Up For Early Deliveries
In late 2023, Beta opened its 200,000-square-foot manufacturing facility, which it said will have capacity for an annual production rate of 300 aircraft. The company said it will start deliveries to early customers in the coming months, while it continues to work towards FAA type certification, gradually increasing production rates over the next 24 months.
In addition to United Therapeutics, which plans to use the aircraft for missions such as carrying human organs for transplant procedures, Beta holds several other deposit-backed commitments. These prospective operators include Air New Zealand, UPS, Blade Urban Air Mobility, Bristow, Helijet, leasing group LCI, and the U.S. Army and Air Force.
Work has begun with these customers to establish programs for training both pilots and maintenance technicians for the Alia fleet. Beta is establishing an aftermarket support network.
“This investment validates progress and milestones toward commercializing electric aviation,” said Beta founder and CEO Kyle Clark. “For years, we’ve flown across the country and deployed with partners to prove the safety and reliability of our aircraft and chargers. Now we’re beginning to produce products for our customers.”
Also this week, Metro Aviation has placed a deposit-backed order for up to 20 of Beta Technologies’ Alia 250 eVTOL aircraft. The Shreveport, Louisiana-based air medical service provider, which operates in 27 states across the U.S., intends to use the all-electric model for emergency response and intra-hospital transport.