Orca AI Secures $23M Funding Led by OCV Partners and MizMaa Ventures, Boosting Autonomous Shipping Innovation

If you think autonomous driving is exclusive to cars, think again. The "autonomous navigation" sector—where AI-guided ships navigate independently to save time and fuel—is set to expand significantly, forecasting growth from $4.46 billion in 2023 to $5.33 billion by 2024.

Orca AI, a London-based startup, recently announced it has successfully powered the world's first autonomous commercial ship voyage through congested waters. The company secured $23 million in fresh funding, spearheaded by OCV Partners and MizMaa Ventures. This financing, classified between Series A and Series B rounds, brings Orca AI's total funding to nearly $40 million.

Founded in late 2018, Orca AI launched its AI navigation technology commercially in 2021 after raising a $13 million Series A. The new capital will be allocated toward scaling operations, expanding its team, and developing innovative products based on data collected from its clients.

The startup was founded by Israeli naval technology experts Yarden Gross and Dor Raviv. Orca AI's system processes various visual data sources during maritime navigation, enabling ships to stay on course while allowing crews to focus on other critical voyage aspects, including potential threats like piracy in today’s increasingly unstable geopolitical situation.

In a notable 2023 trial, Orca reported that its technology reduced "close encounters in open waters" by 33% and "crossing events" by 40% across 15 million nautical miles. To put this in perspective, there were over 2,500 significant marine incidents reported in 2022, according to the European Maritime Safety Agency. Furthermore, Orca AI states that its system can provide annual fuel savings ranging from $100,000 to $300,000 per vessel, achieving a reduction in fuel consumption by 3% to 5%. Additionally, last year, its technology reportedly contributed to a CO2 reduction of 72,716 tons across 1,000 vessels.

The shipping industry is under increasing pressure to minimize its carbon footprint, presenting avenues for entrepreneurs to digitize and enhance operational efficiency with AI technology. The often harsh and dangerous working conditions faced by sailors—exacerbated by rising global threats—are prompting greater automation in crew management.

During a conversation, Orca AI CEO and co-founder Yarden Gross shared, "In the near future, we will witness oceangoing vessels operating autonomously without crew. In the meantime, there's much to optimize and automate during voyages. This can help reduce workload, decrease crew sizes, optimize fuel consumption and emissions, improve estimated time of arrival, and enhance overall safety. Our goal is to create a platform that directly serves the ship."

Gross explained that Orca’s platform uploads all collected data to the cloud, offering fleet managers comprehensive monitoring capabilities. "This allows them to manage not just one vessel, but the entire fleet, effectively turning it into an operational platform for a semi-autonomous fleet."

Hemi Zucker, managing partner at OCV, remarked on the broader context, stating, "Maritime transport is crucial for international trade and the global economy. Approximately 80% of the volume of global trade is transported by sea, representing a market worth around $2 trillion. While advancements in autopilot and collision prevention have significantly transformed planes, trains, and automobiles, we believe the shipping sector still presents an untapped opportunity for autonomous ships—those that can navigate themselves."

Orca AI collaborates with major shipping companies, including MSC, NYK, Maersk, and Seaspan. Other notable players in the autonomous maritime navigation space include Avikus, a subsidiary of Hyundai HD, and Sea Machines.