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

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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 network 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 and quick-service restaurant drive-thru windows, as well as into hotels and 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, 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 is demonstrating that AI can be thoughtfully commercialized at real-world scale," said Ramin Arani, head of investments at LionTree, in the deal announcement.

Metropolis ranked No. 13 on the 2025 CNBC Disruptor 50 list.