Cloud-native AI Optibus raises $107m. for public transport planning

Optibus capabilities include artificial intelligence algorithms that improve mass transit for passengers while also increasing operational efficiency.

The Optibus team (photo credit: Courtesy)
The Optibus team
(photo credit: Courtesy)
Tel Aviv-based Optibus, a cloud-native AI platform for planning and operating mass transportation, said Wednesday that it raised $107 million in a Series C round, co-led by Bessemer Venture Partners and Insight Partners.
The funding comes as Optibus is launching its Geospatial Suite, an update that significantly improves transportation networks and transit equity through the use of data-driven planning, the company said.
The company will use the funding to continue expanding its global presence and enhance product capabilities such as optimization and artificial intelligence algorithms that improve mass transit for passengers while also increasing operational efficiency. The funding will also go toward accelerating the deployment of zero-emission vehicles – replacing mass transit fleets based on fossil fuels and lowering emissions worldwide.
Optibus can help cities make transportation networks more passenger-friendly by visualizing crucial geographic information while planning routes – such as the bike paths that riders may use on the way to or from public transit, or the shopping districts, schools, health clinics or job centers where passengers may want to go, the company said.
The suite also helps promote transit equity by making it easy to view demographic data showing how route changes could affect residents’ access to public transit. The company said it currently powers transit operations in over 450 cities around the world.
“Effective public transportation is a critical part of a well-functioning society, and with the rise of new mobility options and electric vehicles, paired with the added challenge of the pandemic, city operators face more complexity than ever,” said Alex Ferrara, a partner at Bessemer Venture Partners.
“Optibus stands out as a modern cloud-based solution that cuts through this complexity, allowing transit operators to plan routes and optimize schedules in minutes rather than days, promoting a more affordable and passenger-friendly experience.”
The company also received funding from existing investors, including Verizon Ventures, Pitango, New Era Capital Partners, Dynamic Loop and Blue Red Partners. With this latest round, Optibus has raised a total of $160m. since its founding in 2014.