Flying taxi design company Lilium announced today that it is launching a new $240 million fund to help it continue its product development efforts,media reported. The Munich-based start-up is designing and manufacturing vertical take-off and landing (VTOL) aircraft with a top flight speed of up to 100km/h. The company eventually plans to operate in its taxi fleet.
The company is deploying a new round of financing to continue developing aircraft and start building aircraft production plants, which are expected to open in 2025.
A Lilium spokesman said: “We are working hard to provide a new zero-emission vehicle. Doing something like this takes a lot of time and investment, but the result is a valuable business and an opportunity to have a real positive impact on the way we travel. “
It is understood that the investment is a round of internal financing and was completed last month.
In October, according to media reports, Lilium intended to raise between $400m and $500m, although it now appeared to be receiving $160m less than the target, but the company itself disclosed that it was not far from its actual fundraising target. It is worth noting, however, that since there are no new investors in the financing, this could mean that Lilium faces some capital challenges in the future.
But this is by far the largest financing ever received by start-ups in the “aircraft” sector. To date, Lilium has raised more than $340 million.
In addition to fundraising, Lilium faces other challenges. Earlier this month, one of the company’s older prototypes caught fire during maintenance. Although the plane is nearing retirement, the company also decided to suspend testing of the second updated model until a specific cause is found.