According to DC Velocity, Los Angeles-based autonomous freight rail company Parallel Systems has raised $100 million in Series C financing to accelerate production of its Panther battery-electric rail vehicle and expand commercially into international markets.
Targeting underutilized short-haul rail corridors
Parallel Systems’ technology is designed to make rail competitive on shorter, lower-density freight routes — specifically those under 500 miles, which represent 60% of the U.S. surface freight market. The company states that the $1 trillion surface freight market remains dominated by trucking, which faces mounting pressure from rising operational costs, tightening capacity, and strict logistics constraints.
The firm notes that the United States’ rail network is significantly underutilized for these sub-500-mile routes, creating an opportunity for autonomous, battery-electric solutions to improve cost efficiency and supply chain resilience. Parallel’s approach aims to shift freight currently served by trucks onto rail for distances where traditional rail service has been economically unviable.
This strategy aligns with growing demand for lower-cost, more resilient supply chains — a priority cited by investors backing the round and by shippers operating across North America and emerging international markets.
Series C round led by AVP, Hillspire, and others
The $100 million Series C financing was led by new investors AVP and Hillspire, Agility Global, and Cobalt Capital. Existing investors also participated, including Anthos Capital, Congruent Ventures, Riot Capital, and Collaborative Fund. This round follows Parallel Systems’ prior Series B raise of $38 million in 2025.
Matt Soule, Founder and CEO of Parallel Systems, said:
“Closing our Series C round is a major inflection point for Parallel and as well as the short-haul logistics industry, and is the strongest market signal to-date that autonomous freight rail is ready for its moment.” — Matt Soule, Founder and CEO of Parallel Systems
Soule added that capital from the round will directly fund production scale-up of the Panther vehicles and accelerate entry into international markets. The company’s platform has already received Federal Railroad Administration (FRA) approval for pilot operations on real-world rail corridors.
Source: DC Velocity
Compiled from international media by the SCI.AI editorial team.
