Volocopter GmbH, a German startup developing giant drones for ferrying passengers and cargo, today announced that it has secured 37 million euros ($40 million) in fresh funding to pursue its vision of autonomous air transportation.

The raise comes as an extension to the 50 million euro Series C round Volocopter bagged last September. German logistics giant DB Schenker led this latest investment with participation from Japan’s MS&AD Insurance Group Holdings Inc., its subsidiary Mitsui Sumitomo Insurance Group, TransLink Capital and others.

Volocopter is developing a two-seat, electric flying taxi called the VoloCity (pictured) that uses 18 rotors to take off like a helicopter. The aircraft can be operated by an autonomous control system or a pilot sitting inside and can cover up to 16.7 miles per flight with a top speed of over 60 miles per hour, according to the startup. Volocopter envisions the VoloCity being used in urban areas to ferry passengers between the top floors of office towers.

The startup is also working on a second aircraft, the VoloDrone, that is designed for industrial applications such as transporting cargo. It uses a similar 18-rotor flight system to navigate the skies but has a different frame design that allows it to lift up to 440 pounds of cargo. 

Volocopter will divvy up the $40 million in new funding between two projects. On the urban aviation front, the startup will seek to have the VoloCity certified for passenger flights with an eye to opening the first commercial routes in two to four years, although it didn’t specify where those routes will launch. As for the VoloDrone, Volocopter is planning to develop an improved version of the current model to help advance its go-to-market plans.

The startup has already lined up an initial group of partners to explore commercialization opportunities. John Deere owner Deere & Co. is running a pilot project to see if the VoloDrone might be useful as a crop dusting system, while ride-hailing giant Grab Holdings Inc. teamed up with Volocopter this week to launch an air taxi service.

Volocopter has raised the equivalent of more than $130 million to date from investors. 

Photo: Volocopter