Korean mobility firm Code42 banks $25m in Kia-led round

Korean mobility startup Code42 has secured US$25 million in pre-series A funding round led by Kia Motors, which contributed US$12.5 million to the deal.

Other Korean companies such as SK Group, LG, and CJ Group also participated in the round, according to a news release.

From left: SK Telecom executive vice president and business development group head YoungSang Ryu, Kia Motors president and CEO Hanwoo Park, Code42 CEO Chang-hyun Song, LG Electronics president and chief technology officer I.P. Park, and CJ Corporation chief strategy officer KyungMook Lim at the investment signing ceremony / Photo credit: Code42

Established just this March, Code42 is an autonomous transportation-as-a-service (TaaS) startup founded by former Naver chief technology officer and Naver Lab CEO Chang-Hyeon Song.

It is developing an urban mobility operating system (UMOS) for use in services such as shopping, fast delivery, and transportation. The system is aimed to be integrated into self-driving cars, drones, and automated delivery robots to provide mobility and logistics services.

Code42 looks to use the investment to complete the development of its UMOS platform and establish the global autonomous TaaS ecosystem, UMOS Connect. The fresh funds also enables the company to leverage its investors’ infrastructure and service capabilities for its platform, said Song.

“We will be working closely with investor companies in autonomous driving and mapping technology, dispatching, fleet management, next-generation in-vehicle infotainment, and associated connectivity,” the head exec added.

Prior to the latest funding round, Code42 raised US$1.7 million in seed funding from Hyundai Motor in March.

Around that time, Hyundai and Kia Motors entered into a strategic partnership with Ola Electric to invest US$300 million in the startup. However, Indian antitrust watchdog Competition Commission of India has recently halted the South Korean automobile makers’ investment plans in the ride-hailing unicorn as the deal might create a monopolistic situation in the market.

Aside from Ola, the two carmakers also invested US$250 million in Grab as part of a strategic deal that aims to fuel electric vehicle adoption in Southeast Asia.