Rivian Spinoff Also Inc. Valued at $10 Billion After $2 Billion Investment

Rivian, the electric vehicle manufacturer, has recently made significant strides in its strategic initiatives. The company has spun off its micro electric vehicle subsidiary, Also Inc., which has since secured substantial funding. In its latest round of financing, Also Inc. achieved a valuation of $10 billion. Greenoaks Capital contributed $2 billion to this round, marking a significant milestone for the young company.

Earlier this year, Also Inc. was spun off from Rivian to operate independently, receiving an initial investment of $105 million from Rivian and venture capital firm Eclipse. Rivian retains a minority stake in Also Inc., which differentiates itself from its parent company by focusing on micro electric vehicles rather than full-size consumer electric vehicles.

The strategic move to spin off Also Inc. allows Rivian to concentrate on its core business while also fostering innovation in the micro electric vehicle sector. This separation enables both companies to pursue their respective market opportunities more effectively. Also Inc.'s focus on micro electric vehicles positions it to capitalize on the growing demand for compact, efficient transportation solutions.

The $2 billion investment from Greenoaks Capital underscores the confidence of investors in Also Inc.'s potential and its ability to disrupt the micro electric vehicle market. Although specific vehicle details have not been disclosed, Also Inc. has revealed that its technology platform will support a range of electric vehicles, including electric bicycles, tricycles, and four-wheelers, covering community electric vehicles and microcars.

The spin-off and subsequent funding round for Also Inc. highlight Rivian's commitment to innovation and strategic growth. By divesting from Also Inc., Rivian can allocate more resources to its primary operations, enhancing its competitive edge in the full-size electric vehicle market. Meanwhile, Also Inc. can leverage its newfound independence and substantial funding to accelerate its development and market penetration in the micro electric vehicle segment. This strategic maneuver not only benefits both companies but also contributes to the broader electric vehicle ecosystem by fostering competition and innovation.