UK AI star Seeing Machines lands £26m Mitsubishi investment
Car giant Mitsubishi has bought a 15 percent stake in British AI star Seeing Machines, as part of a partnership aimed at accelerating the London-listed company’s growth.
Mitsubishi Electric Mobility has invested £26.2 million through a subscription deal that it says will strengthen Seeing Machine’s balance sheet and provide ‘capacity to focus on growth opportunities in new markets within existing transport segments’.
Seeing Machines, which makes in-car AI technology to monitor drivers for drowsiness and attentiveness, hopes to break even for the first time in the financial year to June 2025.
A partnership agreement will cover “joint automotive business opportunities” in Japan, where the companies will also focus on aftermarket growth in addition to North America and Europe, the companies said in a joint statement.
The pair said the deal would leverage Seeing Machines’ proprietary intellectual property to “assess and enter new adjacent markets” where Mitsubishi Electric Mobility has a leading position.
The car giant plans to increase its stake to 19.9 percent through the acquisition of additional shares.
Seeing Machines creates AI technology in the car to monitor drivers for drowsiness and attentiveness
The vision-based monitoring technology provider recently announced a cash burn of £2 million per month.
Seeing Machines boss Paul McGlone said the ‘critical partnership’ would promise ‘significant benefits for both our businesses’
He added: ‘We have carefully considered this investment in Seeing Machines to ensure we remain focused on supporting our existing key customers and programs in our transportation-focused businesses, while accelerating growth in currently underserved markets and together developing new explore opportunities in adjacent markets. industries.’
See Machinery Stocks rose 11.46 percent to 4.96 cents in early trading, taking 2024 losses to about 12.8 percent.
Peel Hunt analysts had previously raised concerns “driven by industry weakness” about Seeing Machine’s balance sheet and its ability to meet profitability targets.
But the broker said on Monday that the Mitsibishi deal, “while diluting shareholders”, is a “decent option to resolve balance sheet issues” and “unlocks significantly more value in terms of commercial opportunities than a distressed share raise”.
Peel Hunt, who has a buy rating on Seeing Machines with a target price of 7p, said: ‘This investment secures Seeing Machines the next approximately 18 months of runway, after which the company plans to be cash generative.
‘Previously, Mitsubishi collaborated with SEE’s main competitor Smart Eye in the automotive sector, underscoring the superiority of its product.
‘This is not the first major customer to make the switch, as BMW (a major volume driver) has previously swapped Smart Eye for Seeing Machines
‘We believe in the company’s long-term prospects, which are further supported by the continued advancements in its automotive product.
“Once camera-based DMS becomes mandatory in summer 2026, we expect demand to increase, bringing significant cash generation.”
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