Serve Robotics Secures $86 Million in New Financing in December, Solidifying Liquidity Position to Transform Last-Mile Delivery

Rhea-AI Summary

Serve Robotics (SERV) has secured $86 million in new financing during December 2024, bringing its total fundraising in 2024 to $167 million. Since spinning out from Uber in 2021, the company has raised approximately $220 million in total funding.

The December funding was obtained through the company's ATM facility and warrant exercises. As of December 31, 2024, Serve had approximately 51.5 million shares of common stock outstanding. This capital infusion extends the company's operational runway through the end of 2026 and enables self-funding of equipment investments, eliminating the need for equipment financing and associated costs.

The funding will support strategic initiatives and technology advancement as Serve prepares to ramp up production of its third-generation robots and expand into new markets in 2025 and beyond.

Positive

• Raised $86 million in December 2024, totaling $167 million for the year
• Extended operational runway through end of 2026
• Eliminated need for equipment financing and associated costs
• Strengthened balance sheet flexibility for strategic initiatives

Negative

• Significant share dilution with 51.5 million shares outstanding
• Heavy reliance on equity financing through ATM facility and warrant exercises

Insights

Financial Analyst

The $86 million December financing, bringing 2024's total to $167 million, represents a substantial capital injection that transforms SERV's financial outlook. With an extended operational runway through 2026, the company has effectively addressed near-term liquidity concerns. The elimination of equipment financing needs is particularly noteworthy, as it reduces debt servicing costs and improves profit margins. This self-funding capability provides SERV significant operational flexibility and potential for accelerated market expansion. However, the issuance of 51.5 million shares signals considerable dilution for existing shareholders - a critical factor in valuation metrics. This funding structure suggests management prioritized maintaining a strong balance sheet over minimizing dilution, likely anticipating significant capital requirements for market expansion and technology development. The market's willingness to provide substantial funding despite current market conditions indicates strong institutional confidence in SERV's business model and growth trajectory.

Tech Industry Analyst

This capital raise positions SERV at the forefront of the autonomous delivery revolution. Their third-generation robots represent important technological advancement in the last-mile delivery space, where efficiency improvements directly impact profit margins. The extended runway through 2026 provides essential time for technology maturation and market validation - critical factors in the autonomous robotics sector where development cycles are typically lengthy. The $220 million total funding since the Uber spinout demonstrates sustained investor confidence in SERV's technical capabilities. The focus on self-funding equipment investments suggests confidence in their technology's commercial readiness and scalability. The planned market expansion indicates their autonomous delivery solution has reached a level of technical maturity suitable for wider deployment. This positions SERV to potentially capture significant market share in the rapidly evolving autonomous delivery space, particularly as labor costs continue to pressure traditional delivery models.

New capital brings total raised in 2024 to $167 million

SAN FRANCISCO, Jan. 06, 2025 (GLOBE NEWSWIRE) -- Serve Robotics Inc. (“Serve” or the “Company”) (Nasdaq: SERV), a leading autonomous delivery company, today announced that it raised gross proceeds of $86 million during December 2024, bringing total gross proceeds raised in 2024 to $167 million. Since its spinout from Uber in 2021, the Company has secured approximately $220 million in total funding. The additional December 2024 funding includes proceeds raised through Serve’s previously filed ATM facility and the exercise of warrants. As of December 31, 2024, Serve had a total of approximately 51.5 million shares of common stock issued and outstanding.

This infusion of capital significantly strengthens Serve’s financial position, extending its expected operational runway approximately through the end of 2026. Serve is now able to self-fund equipment investments, eliminating the near-term need for equipment financing and its associated servicing costs. By preserving balance sheet flexibility and optimizing its cost of capital with efficient, lower cost funding solutions, the Company is well-positioned to support strategic initiatives and invest in further advancing its technology leadership.

The successful fundraising in 2024 underscores Serve’s position as a leader in transforming last-mile delivery, as the Company aims to ramp up production of its third-generation robots and prepares to enter several new markets.

“This liquidity position reflects strong confidence in our vision and market potential,” said Brian Read, Chief Financial Officer of Serve Robotics. “Looking ahead, we believe we are well-positioned to continue to scale our operations and enter new markets in 2025 and beyond.”

About Serve Robotics
Serve Robotics develops advanced, AI-powered, low-emissions sidewalk delivery robots that endeavor to make delivery sustainable and economical. Spun off from Uber in 2021 as an independent company, Serve has completed tens of thousands of deliveries for enterprise partners such as Uber Eats and 7-Eleven. Serve has scalable multi-year contracts, including a signed agreement to deploy up to 2,000 delivery robots on the Uber Eats platform across multiple U.S. markets.

For further information about Serve Robotics (Nasdaq:SERV), please visit www.serverobotics.com or follow us on social media via X (Twitter), Instagram, or LinkedIn @serverobotics.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Serve intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Exchange Act. These forward-looking statements can be about future events, including statements regarding Serve's intentions, objectives, plans, expectations, assumptions and beliefs about future events, including Serve's expectations with respect to the financial and operating performance of its business, its capital position, and future growth. The words "anticipate", "believe", "expect", "project", "predict", "will", "forecast", "estimate", "likely", "intend", "outlook", "should", "could", "may", "target", "plan" and other similar expressions can generally be used to identify forward-looking statements. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward-looking statements. Any forward-looking statements in this press release are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include those risks and uncertainties set forth in Serve's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the United States Securities and Exchange Commission (the "SEC") and in its subsequent filings filed with the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Serve undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Contacts

Media
Malory Van Guilder
Skyya PR for Serve Robotics
serve@skyya.com
651.335.0585

Investor Relations
investor.relations@serverobotics.com

                                                                                

FAQ

How much funding did Serve Robotics (SERV) raise in December 2024?

Serve Robotics raised $86 million in gross proceeds during December 2024.

What is Serve Robotics' (SERV) total funding since spinning out from Uber?

Since spinning out from Uber in 2021, Serve Robotics has secured approximately $220 million in total funding.

How many shares of SERV were outstanding as of December 31, 2024?

As of December 31, 2024, Serve Robotics had approximately 51.5 million shares of common stock issued and outstanding.

How long will SERV's current operational runway last after the December 2024 funding?

The funding extends Serve Robotics' expected operational runway approximately through the end of 2026.

What will Serve Robotics (SERV) use the December 2024 funding for?

The funding will be used for self-funding equipment investments, supporting strategic initiatives, advancing technology, and ramping up production of third-generation robots for market expansion.