Archer Aviation Raises $230 Million to Deploy Flying Taxis in 2026: Startup Funding Roundup

Archer Aviation has now raised over $1.3 billion and has buy-in from auto manufacturer Stellantis, United Airlines, Southwest Airlines, and more.

There’s a plan for route networks all around California. And the company has billions of dollars worth of contracts from aircraft operators that want to purchase the product.

Now, it’s a matter of ramping up mass production. If all of that can happen and there is consumer demand, then flying taxis may become a thing before the end of the decade.

Including the latest from Archer, four travel startups announced fundraises in the last week totaling over $414 million.

Archer Aviation: $230 Million

Archer Aviation, which is developing a flying taxi for urban use, said it has raised $230 million in equity capital in two rounds since July. 

It includes $55 million on July 1 from auto manufacturer Stellantis, as well as $175 million last week from Stellantis and United Airlines. The funds will be used for “working capital and general corporate purposes,” the company said. 

This is in addition to a $400 million manufacturing contract deal that Stellantis has signed to help Archer Aviation ramp production operations, with a target of making 650 aircraft annually. Stellantis will cover manufacturing labor costs and certain capital expenditures through 2030 in exchange for Archer shares.

Archer detailed terms of the deal in an earnings report. 

California-based Archer is developing an electric vertical takeoff and landing (eVTOL) aircraft called Midnight. It is designed to hold a pilot with four passengers and luggage for urban trips of 20-50 miles at speeds of up to 150 miles per hour. It is powered by six independent battery packs, each supporting a pair of electric engines, the company said.

Archer said it now has manufacturing contracts worth $6 billion, including the most recent commitment from flying taxi operator startup Future Flight Global to purchase 116 units for up to $580 million.

Archer recently delivered its first Midnight aircraft to the U.S. Air Force. 

The company recently unveiled plans for an air taxi network in Los Angeles ahead of some major sporting events: the World Cup in 2026, the Super Bowl in 2027, and the Summer Olympics in 2028. 

The network includes vertiports (eVTOL airports) at Los Angeles International Airport, University of Southern California, Orange County, Santa Monica, Hollywood Burbank, Long Beach, and the Van Nuys neighborhood. The company is also planning to establish a vertiport near the SoFi Stadium, home of the Los Angeles football teams Rams and Chargers. The plan is to begin LA network operations in 2026.

This is in addition to plans for a network at California airports where Southwest Airlines operates, along with five vertiports in the Bay Area.

“With the additional funding and planned LA network we announced today, Archer is well-positioned to meet our goal of commercialization as early as next year,” said Archer CEO Adam Goldstein in a statement last week.

The company last year raised $215 million.

Oyo: $172.7 Million

Oyo, the budget hotel operator and aggregator, has raised $172.7 million (14.5 billion Indian rupees) in series G funding. 

The raise was completed at a valuation of $2.4 billion, a sharp drop from its series F round of $1.5 billion in 2019.

Patient Capital, a Singapore-based entity established by Oyo founder and CEO Ritesh Agarwal, led the round. Other investors included J&A Partners and ASK Financial Holdings.

India-based Oyo has raised an estimated $3.3 billion over the years. Much of that has gone toward rapidly expanding different sectors of the business and building operations software products that it provides to hotel owners. 

Ritesh Agarwal, CEO of Oyo, said at the Skift India Summit in March that the company had been profitable in the prior couple of quarters and had been generating cash flow. 

The company recently reported its first-ever profit. 

(See Skift’s story about the latest fundraise.)

Fresh Bus: $10.4 Million

Fresh Bus, an electric bus operator for intercity travel in India, has raised $10.4 million (875 million Indian rupees) in series A funding. 

The investment came from Ixigo, an Indian online travel agency for rail services. 

Fresh Bus has a fleet of 20 electric buses along with the ability for online booking and an app for bus tracking, a loyalty program, and customer service.

The funding will go toward expanding from two routes to 15 and adding 150 electric buses, with plans to scale to 1,000 electric buses in the next four years. 

(Read Skift’s story.)

Coras: $1.4 Million

Coras, which provides software so that travel companies can sell ticketed events, has raised $1.4 million (€1.3 million).

DataOp led the investment.

​​Dublin-based Coras said it provides a tech connection that allows online brands to sell tickets for events and activities in 300 cities in 50 countries. Clients include RyanAir, Wizz Air, Lufthansa Group, and Discover Airlines.

The funding will go toward scaling the product and rolling out its loyalty program. 

Skift Cheat Sheet

Seed capital is money used to start a business, often led by angel investors and friends or family.

Series A financing is typically drawn from venture capitalists. The round aims to help a startup’s founders make sure that their product is something that customers truly want to buy.

Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.

Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.

Series D, E, and, beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.