Archer Aviation, the California-based electric vertical takeoff and landing (eVTOL) startup, has raised $300 million in fresh funding from BlackRock, Wellington Management, and other institutional investors.
This investment follows a $430 million round in December, bringing Archer’s total funding to approximately $3.36 billion.
Pivoting Toward Defense Contracts
Originally focused on urban air taxi services, Archer Aviation is now doubling down on military applications. The company recently signed an exclusive partnership with Anduril, a defense tech firm, to co-develop a hybrid gas-electric VTOL aircraft designed for reconnaissance, logistics, and covert missions. Archer is pursuing a Department of Defense (DoD) program of record, which would secure long-term government funding and a scalable production roadmap.
Nikhil Goel, Archer’s Chief Commercial Officer, stated:
“As we deepened our defense work, we realized the market was much larger than expected, both in scope and timing. We’re the only eVTOL company targeting a sizable defense contract.”
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How Archer’s eVTOLs Offer a Tactical Advantage
Compared to traditional helicopters, Archer’s Midnight aircraft offers:
- Lower noise levels – Nearly silent at 300 feet, making it ideal for stealth operations.
- Reduced heat signatures – A major advantage over conventional military helicopters.
- Distributed propulsion system – Featuring 12 smaller rotors instead of one large rotor, enhancing safety and noise reduction.
Scaling Production and Certification
Despite its defense focus, Archer Aviation remains committed to launching commercial air taxi services in late 2025 in the United Arab Emirates, with plans to expand to Los Angeles, San Francisco, New York, South Korea, and India in 2026. The company has partnerships with major airlines like United, Southwest, and IndiGo and a $500 million aircraft purchase agreement with Japan Airlines.
However, Archer has yet to receive FAA certifications required for commercial operations. The company expects to complete piloted flight tests soon and begin production at its Georgia factory, which aims to manufacture 650 aircraft annually by 2030.
Looking Ahead
With over $1 billion in liquidity, Archer is now positioned to scale its Midnight eVTOL production while accelerating its hybrid military aircraft development. If successful, its defense strategy could provide a stable revenue stream and competitive edge in the rapidly evolving advanced air mobility (AAM) industry.
