AI startup Metropolis, biggest parking lot operator in U.S., raises $1.6 billion for major expansion

Metropolis, the leading parking lot operator in the United States, has successfully raised $1.6 billion in a recent funding round, achieving a valuation of $5 billion. The company employs advanced AI and computer vision technologies to streamline vehicle identification and facilitate contactless parking payments. With its extensive reach—serving over 20 million licensed drivers across more than 4,000 locations—Metropolis is set to significantly expand its operations into various sectors, including retail, gas stations, and hospitality. CEO and co-founder Alex Israel emphasized the company's ambition to scale its platform, stating, "With this new capital, we're continuing to scale our platform and forge the foundation of the Recognition Economy, building a new paradigm for how AI is deployed in the real world." The funding includes a $1.1 billion senior secured loan and $500 million in Series D equity, with notable support from investors such as LionTree, Eldridge, and SoftBank. This capital infusion marks the largest fundraising effort in the company's history, excluding acquisitions, and comes on the heels of its $2 billion in previous deals. Notably, Metropolis also took parking lot operator SP Plus private in what was the largest private M&A deal in 2024. The company attributes its increased debt capacity to improved gross margins, showcasing its financial growth. LionTree CEO Aryeh Bourkoff praised Metropolis’s achievements, highlighting the company's unique position in commercializing AI on a large scale. He noted the vast potential for applications across multiple sectors, suggesting that this is just the beginning of a significant opportunity. Metropolis ranks No. 13 on the 2025 CNBC Disruptor 50 list, reflecting its innovative approach in the industry. Users of Metropolis services experience seamless payment processes, eliminating the need for physical tickets or apps, as the technology recognizes a vehicle's distinct characteristics. Courtney Fukada, co-founder and chief integration officer, explained the company’s vision at the recent CNBC AI Summit, describing their journey of transforming the analog world of parking into a digital experience. As they venture into more retail environments, Metropolis plans to adopt a software-as-a-service model, allowing retail and real estate owners to leverage their technology. Fukada clarified that their strategy does not involve acquiring franchises but rather licensing their technology to existing operators. As Metropolis broadens its reach, it aims to harness data analytics to enhance personalization for consumers, paving the way for a new era in retail interactions. "We know where people are actually moving in the real world, and we can start to put together essentially a member graph of their physical world footprint and insights," she stated, indicating the potential value of this data for commercial real estate and hospitality industries.