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JetZero, a startup aircraft company, raises $175 Million in Series B financing

JetZero announced on Tuesday that it had raised $175 million as part of a Series B financing round. The California-based startup is aiming to "advance" the development and design of its blended-wing planes, which are designed to reduce fuel consumption.

The latest funding round was led by Northrop Grumman and the venture capital arms of United Airlines and 3M.

The company is a new entrant into the aerospace industry. It plans to capitalize on the?new jet shortages, and the industry's effort to make flying cheaper and more efficient.

The new capital will help accelerate the development of its prototype aircraft, "Demonstrator", which is designed to achieve at least 30% better aerodynamics than traditional tube-and-wing aircraft.

The prototype will be ready for flight in 2027.

JetZero said that it has received more than $1 billion of funding, including grants from the government, incentives, and commercial backing.

United Airlines invested in a startup last year. The investment included the option to order 100 airplanes, with a maximum of 100.

Last year, the all-wing airplane manufacturer?said that it would invest $4.7 Billion over a decade on a production plant and headquarters in North Carolina.

The company received a $235-million contract in 2023 from the U.S. Air Force to develop a demonstrator and is looking to enter commercial service by the early 2030s. (Reporting and editing by Vijay Kishore in Bengaluru, Anshuman tripathy from Bengaluru)

(source: Reuters)