Elon Musk’s start-up The Boring Company, which builds underground highways to ease traffic congestion, has raised $675 million in Series C round, bringing its valuation up to $5.7 billion.
The round was led by Vy Capital and Sequoia Capital, with participation from other investors Valor Equity Partners, Founders Fund, 8VC, Craft Ventures, and DFJ Growth, Bloomberg reported.
The Texas-based company, which specialises in shorter trips within cities, has been planning to expand its workforce in engineering, operations, and production to scale up its Loop project and accelerate the research and development of Prufrock, the company’s next generation tunnelling machine.
The fresh funding comes three years after Boring Co. raised $120 million at a valuation of $920 million.
Musk had earlier sold Boring Company hats and flamethrowers to raise funds.
The tunnelling company launched its commercial project in Las Vegas in June last year to transport visitors through the city’s Convention Center using human-driven Tesla vehicles.
Apart from that, its other projects in Chicago, Los Angeles, and a connection between Washington and Baltimore have fizzled out.
The new funding round includes strategic investments by real estate companies, including Brookfield, Lennar Corp., Tishman Speyer and Dacra Development Corp.
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Last week, Musk attempted a hostile takeover of Twitter Inc with his $43 billion cash offer.
His offer price of $54.20 per share was a 38 per cent premium to Twitter’s April 1 close, the last trading day before his 9.1 per cent stake in the social media platform was made public.
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The New York Post on Tuesday citing sources said that Musk is willing to invest between $10 billion and $15 billion of his own money to take Twitter private.
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(With inputs from agencies)