Parallel Systems has raised $100 million in Series C funding to scale production and commercialization of its battery-electric autonomous freight rail technology. AVP led the round, with new investors Hillspire, Agility Global and Cobalt Capital also participating. Existing investors Anthos Capital, Congruent Ventures, Riot Capital and Collaborative Fund returned for the financing.
Parallel plans to use the new capital to expand manufacturing of its third-generation Panther rail vehicle, accelerate full commercialization and enter international markets.
The company was founded in 2020 by Matt Soule, who previously spent 13 years at SpaceX.
Parallel’s system is designed to enable railroads to economically handle shorter and lower-density freight routes that have traditionally been dominated by trucks.
The company is targeting the short-haul portion of the approximately $1 trillion U.S. surface freight market, noting that routes under 500 miles represent about 60% of the market.
Since completing its Series B in 2025, Parallel has moved from initial prototypes into commercial deployment under regulatory testing authorization.
Several major railroads are now under contract to deploy Parallel’s system for commercial freight transportation.
Its Georgia pilot with short-line railroad operator Genesee & Wyoming is operating under Federal Railroad Administration supervision.
KEY QUOTES:
“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. With the FRA-approved pilot proving our platform in real-world corridors, this capital will directly fund the production scale-up of our Panther vehicles and accelerate our entry into international markets hungry for lower cost, more resilient supply chains.”
Matt Soule, Founder and CEO of Parallel Systems
“Matt and the entire Parallel team have built a proven, viable and scalable autonomous freight rail platform that has generated significant commercial interest among the major rail companies in the U.S. and globally. We are now past the question of ‘if’ and fully onto ‘how soon.’”
Arun Gupta, Executive Chairman of Parallel Systems
