Arbe Robotics has closed a $15 million underwritten registered direct offering, providing additional capital as the radar technology company scales commercial opportunities in automotive, defense, and counter-drone markets.
The Tel Aviv-based company sold 833,334 ordinary shares at $0.60 per share, along with pre-funded warrants to purchase up to 24,166,666 ordinary shares at $0.5999 per share. The pre-funded warrants carry an exercise price of $0.0001 per share, are immediately exercisable, and do not expire until exercised in full.
Arbe offered all shares and pre-funded warrants sold in the transaction.
The company generated approximately $15 million in gross proceeds before underwriting discounts, commissions, and other offering expenses.
Arbe plans to use the net proceeds for working capital and general corporate purposes, with several specific growth initiatives identified as potential uses.
Those priorities include scaling operations to support expanding commercial opportunities in the automotive market.
Arbe recently announced that its radar technology was selected for a Level 3 passenger vehicle program involving one of the world’s largest automotive groups.
The company is also planning to expand further into defense and counter-drone applications.
Arbe’s radar technology is designed to produce ultra-high-resolution sensing information for applications requiring detailed perception and real-time processing.
Its technology stack incorporates proprietary chipsets, radar systems, and AI algorithms that generate perception-ready data.
The platform is intended for customers including automotive manufacturers, Tier 1 suppliers, and defense integrators developing systems for passenger vehicles, robotaxis, heavy machinery, and counter-drone applications.
Part of the new funding could also support potential strategic mergers and acquisitions, although Arbe did not identify any specific transactions it is currently pursuing.
Two institutional investors led the financing, including AWM Investment Company, investment adviser to the Special Situations Funds.
AWM has participated in several previous financings for Arbe.
Canaccord Genuity served as sole bookrunner for the offering.
The financing adds liquidity as Arbe seeks to convert automotive development activity into larger commercial programs while diversifying its radar platform into additional markets.
The company has positioned high-resolution radar as an increasingly important component of perception systems because radar can operate across difficult weather and lighting conditions while providing information complementary to cameras and other sensors.
Defense and counter-drone applications could broaden the addressable market beyond automotive programs and provide another use case for sensing technology that requires high-resolution detection and tracking.
Arbe is headquartered in Tel Aviv, Israel, with additional offices in the United States, Germany, and China.
The $15 million offering gives the company additional capital to support those commercialization efforts while preserving flexibility for working capital, corporate needs, and potential strategic transactions.
