AI Parking Giant Metropolis Raises $1.6 Billion to Pioneer 'Recognition Economy' Beyond Parking

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

How AI-based 'recognition' economy works and why it may lead post-device world Metropolis, which uses AI and computer vision to identify vehicles and take parking lot payments without any physical transaction, has raised $1.6 billion in combined debt and equity in a new fundraising round at a $5 billion valuation. Already the largest parking lot operator in the U.S., handling more than 7% of licensed drivers (nearly 20 million people) across over 4,000 locations, the Santa Monica, California-based company is planning to use the capital for a major expansion across the retail sector, including gas stations, quick-service restaurant drive-thru windows, and hotels, as well as office buildings. "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," said Alex Israel, CEO and co-founder of Metropolis, in the deal announcement. The $1.6 billion capitalization includes a $1.1 billion senior secured loan and $500 million in Series D equity funding, led by new investor LionTree. Additional investors included Eldridge, 3L, SoftBank, DFJ, Tekne Capital, Vista and BDT & MSD Partners' affiliated credit funds. It's the largest round that the company has raised across its $2 billion in deals not specifically tied to an acquisition -- Metropolis took parking lot operator SP Plus private in 2024, the largest private M&A deal of 2024. The company doubled the debt it was able to raise since its last credit market deal in 2024 in a new financing led by J.P. Morgan, which the company attributed to its expanding gross margins. "Metropolis has proven what few companies have, demonstrating that AI can be commercialized at real-world scale," said Aryeh Bourkoff, CEO of LionTree, in the deal announcement. "With applications extending across every sector of daily life, from retail and hospitality to fueling and more, the scale potential is extraordinary, and we believe this is just the beginning of a generational opportunity."

SoftBank-backed Metropolis raises $1.6 billion to expand beyond AI-powered parking lots

The funding includes a $500 million Series D equity round led by LionTree that valued the company at $5 billion. SoftBank Vision Fund, Vista Equity Partners, BDT & MSD Partners and Eldridge also participated in the round. Metropolis Technologies, a US operator of parking lots that uses artificial intelligence and computer vision to recognize vehicles, has raised $1.6 billion in fresh capital to extend its technology into sectors such as retail, restaurants and gas stations, the company said on Thursday. The funding includes a $500 million Series D equity round led by LionTree that valued the company at $5 billion. SoftBank Vision Fund, Vista Equity Partners, BDT & MSD Partners and Eldridge also participated in the round. The Los Angeles-based company also secured a $1.1 billion syndicated term loan led by J.P. Morgan, backed by cash flows from its parking operations. Chief Executive Alex Israel said in an interview that the new capital will be used to hire technical talent, accelerate product development, and deploy its recognition and payment-automation technology in new verticals, including drive-through restaurants, gas stations and hotels. Israel said the goal is to create what he calls a "Recognition Economy," where a customer's identity or presence is enough to trigger a transaction, saving time. Founded in 2017, Metropolis scaled rapidly through acquiring established businesses and integrating its technology, including the $1.5 billion take-private of parking services provider SP+ in 2024. Earlier this year, it acquired SoftBank-backed biometrics and vision analytics firm Oosto for about $125 million. Now one of the largest parking lot operators in the U.S., Metropolis runs more than 4,200 locations across 40 countries. The company says it processes about $5 billion in annual transactions from 50 million customers and is profitable. Metropolis uses cameras and license plate readers to identify vehicles whose owners have opted into its system, allowing them to enter and exit parking lots without stopping to pay. The company plans to sell the same technology to the hospitality industry to automate payments and check-ins, and charge the businesses through software subscriptions. The company's ambitions come as other retail automation efforts have faced challenges. Amazon, for instance, has scaled back its "Just Walk Out" checkout-free system in its Fresh grocery stores, citing cost and complexity, though it continues to license the technology to third parties.