Archer Aviation Raises $300 Million in BlackRock-Backed Funding

Archer Aviation, a California-based startup specializing in electric vertical takeoff and landing (eVTOL) vehicles, has secured $300 million in funding from a group of institutional investors led by BlackRock. This latest round of funding, announced on Tuesday, brings Archer's total funding to around $3.36 billion. The company plans to use the fresh capital to accelerate its work with Anduril, a weapons manufacturer, to develop a hybrid gas-and-electric-powered VTOL aircraft for critical defense applications.

Archer's pivot towards defense applications is driven by several factors, including growing geopolitical tensions, a larger market scope and timing, the potential for guaranteed funding, and the attractive defense use cases for eVTOLs. The company is targeting a program of record from the Department of Defense, which would provide guaranteed funding, a path to scale, and a serious competitive moat. Archer's chief commercial officer, Nikhil Goel, confirmed that the $300 million from investors will mainly be used to accelerate the work Archer is doing with Anduril to build a hybrid VTOL, further solidifying its competitive position in the eVTOL market.



Archer's decision to focus more acutely on defense comes at a moment of industry momentum. The Trump administration has vowed to "rapidly field emerging technologies" like AI, drones, and counter-drone systems to modernize the military. For eVTOLs, the very qualities that make them perfect for urban and regional flight, such as low noise and heat signatures, also make them attractive for defense use cases. Archer's Midnight aircraft, with its distributed propulsion and winged horizontal flight, creates much less noise than traditional helicopters, making it well-suited for discrete missions.

Archer's path to commercialization remains on track, with plans to launch its first limited commercial air taxi network in late 2025 in the United Arab Emirates. In 2026, the company aims to expand air taxi services to several other cities and countries, including Los Angeles, San Francisco, New York, South Korea, and India. Archer has partnered with major airlines like United, Southwest, and IndiGo to facilitate air taxi networks and has secured conditional purchase agreements with Japan Airlines and Sumitomo.

In conclusion, Archer Aviation's $300 million funding round, led by BlackRock, will support the company's growth and expansion strategies, particularly in the defense sector. By targeting a program of record from the Department of Defense, Archer aims to secure guaranteed funding, a path to scale, and a serious competitive moat in the eVTOL market. As the company continues to advance towards commercialization, its robust financial position and industry-leading technology position it as a frontrunner in the eVTOL space.