California-Based Parallel Systems Raises $100M in Series C Funding

Parallel Systems, a Los Angeles, CA-based provider of a battery-electric autonomous freight rail solution, has raised $100 million in a Series C funding round, bringing the total amount to over $200 million.

The round was led by AVP with participation from Hillspire, Agility Global, Cobalt Capital, Anthos Capital, Congruent Ventures, Riot Capital, and Collaborative Fund.

The company will use the funding to support full commercialization, expand into international markets, and scale production of its third-generation Panther rail vehicle.

What is Parallel Systems?

Parallel Systems develops battery-electric autonomous rail vehicles designed to make shorter freight routes more competitive with trucking.

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Its technology allows railroads to serve shorter, lower-density routes that have traditionally been difficult to operate economically. This can give shippers access to rail for short-haul freight that would otherwise move by truck.

Parallel combines autonomous hardware and software into an integrated freight delivery system. Its technology is designed to provide the flexibility associated with trucking while using the cost and environmental advantages of rail.

How Much Funding Has Parallel Systems Raised?

Parallel Systems has raised $100 million in its latest Series C funding round.

The latest round brings the company's total funding to more than $200 million.

The source does not provide the amount or investor details for the company's previous Series B round, which closed in 2025.

Who Invested in Parallel Systems’ Series C?

The $100 million Series C round was led by AVP.

Other participating investors include:

• Hillspire
• Agility Global
• Cobalt Capital
• Anthos Capital
• Congruent Ventures
• Riot Capital
• Collaborative Fund

Why the Funding Matters

Parallel Systems will use the new funding to move toward full commercialization and expand its operations internationally.

The company will also scale manufacturing of its third-generation Panther rail vehicle.

The funding will support the company's efforts to deploy its autonomous freight rail technology across more routes and commercial applications.

Who founded Parallel Systems?

Parallel Systems was founded in 2020 by Matt Soule.

The company is based in Los Angeles, California, and describes itself as a transportation technology manufacturer focused on autonomous battery-electric rail systems.

"Closing our Series C round is a major inflection point for Parallel and the short-haul logistics industry, and is the strongest market signal to date that autonomous freight rail is ready for its moment," said 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," said Arun Gupta, Parallel's Executive Chairman. "We are now past the question of 'if' and fully onto 'how soon,'" added Mr. Gupta.

Market and Business Growth

Parallel Systems says the surface freight market is worth about $1 trillion and remains heavily dominated by trucking.

The company is targeting shorter routes, particularly those under 500 miles, which represent 60% of the surface freight market according to the company.

Since its Series B round in 2025, Parallel has moved from early-stage prototyping to live commercial deployment under regulatory test approval.

Several major railroads are now under contract to deploy Parallel's technology for commercial freight transportation.

What Happens Next?

Parallel Systems plans to move toward full commercialization, expand into international markets, and scale manufacturing of its third-generation Panther rail vehicle.

The company will continue deploying its autonomous battery-electric freight rail system with railroad partners and advancing its commercial operations.

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