Metropolis Technologies, a United States-based operator of parking facilities that uses artificial intelligence and computer vision to recognise vehicles, has raised $1.6 billion in new funding to expand its technology into sectors such as retail, restaurants and fuel stations, the company announced on Thursday.
The funding round includes a $500 million Series D equity investment led by LionTree, valuing the company at $5 billion. Other participants in the round include SoftBank Vision Fund, Vista Equity Partners, BDT & MSD Partners, and Eldridge.
In addition to the equity funding, Metropolis secured a $1.1 billion syndicated term loan led by J.P. Morgan, supported by cash flows from its parking operations.
Chief Executive Alex Israel said in an interview that the new funding will be used to hire technical experts, speed up product development, and expand the company’s recognition and payment automation technology to new areas such as drive-through restaurants, hotels, and fuel stations.
Israel explained that Metropolis’s vision is to build what he describes as a “Recognition Economy,” where a customer’s identity or presence alone can trigger a transaction, saving time and improving convenience.
Founded in 2017, Metropolis has grown rapidly by acquiring established businesses and integrating its technology. In 2024, the company completed the $1.5 billion take-private acquisition of parking services provider SP+. Earlier this year, it also acquired Oosto, a biometrics and vision analytics firm backed by SoftBank, for around $125 million.
Now one of the largest parking operators in the United States, Metropolis manages over 4,200 locations across 40 countries. The company reports processing approximately $5 billion in annual transactions from 50 million customers and is already profitable.
Metropolis uses cameras and licence plate readers to identify vehicles whose owners have opted into its system, allowing them to enter and exit parking lots seamlessly without stopping to pay. The company now aims to extend this technology to the hospitality sector to automate payments and check-ins, offering its software on a subscription model.
Its expansion comes as other retail automation initiatives face challenges. Amazon, for instance, has scaled back its “Just Walk Out” checkout-free system in its Fresh grocery stores due to cost and complexity, though it continues to license the technology to third parties.
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