Ampaire Secures $19M Series B to Boost Hybrid-Electric Eco Caravan Development

Ampaire, the California-based startup pioneering hybrid-electric propulsion for aircraft, announced it has raised $19 million in a Series B funding round. This latest capital injection brings the company's total funding raised to $68 million, fueling efforts to commercialize its innovative AMP-H570 hybrid-electric system. The round was spearheaded by DiamondStream Partners and saw participation from the venture arms of major airlines International Air Group (IAG) and Alaska Airlines, alongside several venture capital firms and cleantech-focused investors.

At the core of Ampaire's technology is the hybrid-electric AMP-H570 propulsion system, designed to retrofit existing Cessna Grand Caravan aircraft to significantly reduce fuel consumption. The resulting upgraded aircraft, known as the Eco Caravan, aims to achieve up to 50 percent lower fuel burn compared to conventionally powered Caravans. This is a major environmental milestone given the widespread use of the Grand Caravan in general aviation and regional commuter roles, where fuel efficiency improvements can yield substantial emissions reductions and operating cost savings.

The involvement of prominent airline industry players such as IAG and Alaska Airlines in this funding round underscores the growing interest from mainstream aviation operators in sustainable and hybrid-electric aviation solutions. Their strategic investment aligns with broader industry trends that prioritize decarbonization and seek to integrate innovative propulsion technologies into future fleets. Ampaire's retrofit approach also appeals to airlines looking for practical and scalable methods to reduce carbon footprints without waiting for entirely new aircraft designs.

Beyond upgrading flight propulsion, Ampaire is exploring applications for hybrid-electric technology on the ground through powering aircraft Auxiliary Power Units (APUs). APUs are essential for providing electrical power to aircraft systems during ground operations without running main engines, traditionally consuming fossil fuels. Introducing hybrid-electric APUs could further reduce emissions and operational costs during ground handling, presenting an incremental yet impactful step towards greener aviation operations.

Ampaire's inclusion in the eVTOL Integration Pilot Program (eIPP), backed by the US government and the Federal Aviation Administration (FAA), provides a critical platform for advancing hybrid-electric and electric vertical takeoff and landing technologies. The eIPP supports safe integration of emerging air mobility innovations into the national airspace system, offering AMPaire opportunities to validate and demonstrate their propulsion systems under rigorous regulatory and operational standards. This recognition also signals governmental support for transitioning to new urban and regional mobility paradigms.

The fresh funding from diverse backers including Forward Ventures, Techstars Ventures, the Autodesk Foundation Impact Fund, and the Los Angeles Cleantech Incubator Impact Fund highlights strong confidence from both aviation-focused and cleantech investors. These groups are eager to support technologies that reconcile aviation’s operational demands with the imperative to reduce environmental impact — a critical challenge as the aviation sector accounts for increasing global emissions. Ampaire’s hybrid-electric solutions present a tangible path forward by upgrading proven airframes rather than waiting for next-generation aircraft.

Ampaire’s technology development and testing activities are well underway. The company recently commenced hybrid-electric test flights in Utah as part of the eIPP program, marking important milestones in real-world validation of its hybrid propulsion on the Cessna Grand Caravan platform. Successful demonstration of reliability, performance, and operational benefits will be essential to gaining wider certification and customer adoption across regional and general aviation sectors.

This $19 million funding round sets the stage for Ampaire to accelerate commercialization and production readiness of the Eco Caravan, targeting operators seeking immediate fuel savings and emissions reductions. Their retrofit model enables more rapid deployment compared to new aircraft programs, helping bridge the industry’s environmental targets in the near term. Working closely with regulators and industry partners, Ampaire positions itself at the forefront of hybrid-electric aviation’s entrance into commercial service.