Gatik Raises $200M Through Partnership with PepsiCo for Autonomous Trucking Solutions

Gatik, an emerging player in the autonomous vehicle industry known for its self-driving delivery trucks, has successfully raised $200 million in funding, just two months after establishing a multi-year partnership with PepsiCo.

The funding round was led by the Qatar Investment Authority and Koch Disruptive Technologies, along with contributions from Millennium Management, ARK Invest, and Intact Private Capital. Headquartered in Santa Clara, California, Gatik has secured nearly $500 million since it stepped out of stealth mode in 2019. The company has not publicly disclosed its current valuation.

As Gatik enters this significant phase with its largest funding round to date, it is evolving from a startup with limited pilot programs to a provider of commercial driverless services in various urban areas.

“These investors are in it for the long term,” stated Gatik co-founder and CEO Gautam Narang in a recent conversation. “To scale and grow as we expect in the coming years, we need financial partners who can genuinely support us.”

For Narang, scaling involves enlarging the fleet of autonomous trucks, broadening customer outreach, and penetrating new markets — ultimately aiming to extend operations beyond North America.

Gatik has carved out a unique niche within the rapidly evolving and competitive autonomous vehicle sector. While many startups and established tech companies have focused on sidewalk delivery robots, robotaxis, long-haul self-driving trucks, or autonomous equipment for construction and mining, Gatik has concentrated on short-haul logistics.

The startup has assembled a fleet of driverless box trucks, manufactured by Isuzu Motors, specifically designed for food and beverage deliveries. Initially, these trucks operated on fixed routes under 10 miles, but they have evolved to handle dynamic routes with multiple pick-up and drop-off points, covering up to 400 miles.

In the “middle-mile” delivery segment, Gatik has established itself as a key player, serving major clients such as Canada’s Loblaws, Kroger, and Tyson Foods. Its first major client, revealed six years ago, was Walmart.

The previous year was pivotal for the company, showcasing significant technological and operational progress that enabled the removal of safety drivers from its commercial routes. Gatik is now operating several fully driverless trucks commercially across various markets, adept at navigating diverse conditions.

“Our technology has advanced remarkably over the past few years, especially with our latest generation of vehicles,” Narang emphasized, noting that the third-generation self-driving trucks can operate continuously on surface streets and highways, handling light rain and snow.

Although Gatik has not disclosed specific fleet numbers or a comprehensive client list, its largest public partnership is with PepsiCo, utilizing 41 driverless box trucks to deliver Cheetos, Doritos, and other Frito-Lay products from distribution centers to stores in Dallas, Phoenix, and Northwest Arkansas.

Focusing on the middle-mile sector has proven advantageous for the Santa Clara-based startup, resulting in commercial contracts totaling $600 million in contracted revenue, according to Narang.

This new $200 million funding will further bolster Gatik’s growth efforts, necessitating an increase beyond its current workforce of 350 employees. Narang noted plans to hire more engineers and operations staff, as well as to explore new markets or reinforce their presence in existing ones.