The funding round saw the Alibaba Group making an undisclosed strategic investment in the startup.
Optibus, a U.S.-Israeli mobility technology company stated, it has secured $40 million in a private funding round that was led by Insight Venture Partners and which saw a strategic investment from the Alibaba Group.
Its existing investors, including Sir Ronald Cohen, Verizon Ventures, New Era Capital and Pitango Venture Capital also participated in the round.
Details of Alibaba’s stake were not disclosed.
Incidentally, Optibus develops software to modernize mass transit systems and prepares them for integrating into smart cities.
According to a statement from Optibus, its technology is used by more than 300 cities for improving quality of service, reducing costs, reducing congestions, reducing emissions and for streamlining operations.
In its previous funding round, in 2017, it had secured $12 million.
Optibus said it will use the proceeds to expand its presence in North America and Europe. It also reported a jump in sales by 400%.