Arbe Robotics Ltd. Announces Closing of $18.5 Million Underwritten Registered Direct Offering

Tel Aviv, Israel – January 27, 2026 – , a global leader in advanced perception radar solutions, has officially announced the successful closing of its $18.5 million underwritten registered direct offering. The offering included the full exercise of the underwriters’ over-allotment option, marking a significant milestone for the company as it continues to expand its technological leadership and commercial reach in the automotive and mobility sectors.

This financing event reflects growing investor confidence in Arbe Robotics’ innovative radar technology, which is designed to enable safer, smarter, and more reliable autonomous and assisted driving systems. The newly raised capital is expected to play a critical role in accelerating the company’s strategic initiatives, including product development, customer deployments, and global market expansion.

Overview of the Registered Direct Offering

The underwritten registered direct offering consisted of the sale of ordinary shares and accompanying warrants to institutional investors. The offering was conducted pursuant to an effective shelf registration statement previously filed with and declared effective by the U.S. Securities and Exchange Commission (SEC).

The total gross proceeds from the transaction amounted to approximately $18.5 million, before deducting underwriting discounts, commissions, and other offering-related expenses. Importantly, the underwriters exercised their over-allotment option in full, underscoring strong demand from investors and favorable market reception.

Key Terms of the Offering

The securities offered were sold at a price negotiated directly with investors, in compliance with applicable securities regulations. The structure of the transaction allowed Arbe Robotics to efficiently access capital while minimizing dilution and maintaining strategic flexibility.

Underwritten registered direct offerings are often viewed as a signal of institutional confidence, as they involve commitments from professional investors who conduct extensive due diligence prior to participation.

Strategic Importance of the Capital Raise

The successful completion of this $18.5 million financing provides Arbe Robotics with additional resources to execute its long-term growth strategy. The company has stated that the net proceeds will be used for general corporate purposes, which may include:

• Continued research and development of next-generation radar chipsets and perception software
• Scaling manufacturing capabilities to meet anticipated customer demand
• Supporting commercialization efforts with automotive OEMs and Tier 1 suppliers
• Strengthening working capital and balance sheet flexibility

By reinforcing its financial position, Arbe Robotics aims to remain at the forefront of high-resolution radar innovation, a technology increasingly seen as essential for advanced driver-assistance systems (ADAS) and autonomous driving.

Advancing High-Resolution Radar Technology

Arbe Robotics is widely recognized for developing 4D imaging radar solutions that deliver significantly higher resolution and accuracy compared to traditional automotive radar systems. Unlike conventional radar, which often struggles with object classification and dense urban environments, Arbe’s technology provides detailed point-cloud data that rivals lidar performance while maintaining radar’s inherent advantages.

These advantages include robustness in adverse weather conditions such as fog, rain, dust, and darkness, as well as lower cost and greater scalability for mass-market vehicles.

Why Radar Matters for Autonomous Driving

As the automotive industry moves toward higher levels of automation, sensor redundancy and reliability have become critical. Cameras, lidar, and radar each play a role, but radar is uniquely positioned to deliver consistent performance regardless of lighting or weather conditions.

Arbe Robotics’ perception radar is designed to detect and track hundreds of objects simultaneously, classify them accurately, and provide real-time data to vehicle decision-making systems. This capability is essential for improving safety, reducing accidents, and enabling advanced autonomous features.

Market Trends Supporting Arbe Robotics’ Growth

The global automotive radar market is experiencing rapid growth, driven by regulatory mandates for safety features, consumer demand for advanced driver assistance, and ongoing investments in autonomous vehicle development.

Governments around the world are introducing stricter safety standards, including requirements for automatic emergency braking, collision avoidance, and adaptive cruise control. These regulations are accelerating the adoption of radar-based systems across vehicle segments, from premium models to mass-market cars.

Positioning Within a Competitive Landscape

While the radar market includes several established players, Arbe Robotics differentiates itself through its proprietary chipset architecture and software-defined radar approach. The company’s solutions are designed to be adaptable, upgradeable, and future-proof, allowing automakers to enhance performance through software updates rather than hardware replacements.

This flexibility is particularly attractive to OEMs seeking long-term platforms that can evolve alongside regulatory and technological changes.

Institutional Investor Confidence and Market Validation

The full exercise of the underwriters’ over-allotment option is a noteworthy indicator of strong investor interest. Over-allotment options, often referred to as “greenshoe” options, are typically exercised only when demand exceeds initial expectations.

In this case, the decision to fully exercise the option suggests that institutional investors see meaningful upside potential in Arbe Robotics’ technology and business model.

Role of Underwriters

The underwriters played a key role in structuring and executing the offering, leveraging their market expertise to connect Arbe Robotics with long-term institutional investors. Their involvement also adds an additional layer of credibility to the transaction, as underwriters conduct thorough assessments of a company’s financial health, technology, and growth prospects.

Financial Stability and Long-Term Vision

With the completion of this offering, Arbe Robotics has further strengthened its balance sheet, providing greater financial stability as it navigates a competitive and capital-intensive industry.

The company’s leadership has consistently emphasized a disciplined approach to capital allocation, focusing on investments that support sustainable growth rather than short-term gains. This philosophy aligns with the expectations of institutional investors seeking long-term value creation.

Supporting Commercialization Efforts

One of the primary objectives of the newly raised capital is to support commercialization initiatives. Arbe Robotics is actively working with automotive OEMs, Tier 1 suppliers, and mobility technology partners to integrate its radar solutions into next-generation vehicle platforms.

These collaborations often involve extensive validation, testing, and customization, all of which require significant financial and technical resources. The additional funding enhances Arbe Robotics’ ability to meet these demands and accelerate time-to-market.

Implications for the Automotive and Mobility Ecosystem

The successful closing of this $18.5 million offering has broader implications beyond Arbe Robotics itself. It highlights continued investor appetite for companies developing foundational technologies that enable safer and more autonomous transportation.

As the industry transitions toward software-defined vehicles and advanced sensing platforms, high-resolution radar is expected to play an increasingly central role. Arbe Robotics’ progress reinforces the view that radar innovation remains a critical area of opportunity within the mobility ecosystem.

Looking Ahead: Growth Opportunities and Challenges

While the outlook for Arbe Robotics is promising, the company also faces challenges common to emerging technology providers. These include long automotive development cycles, intense competition, and the need to continuously innovate in a rapidly evolving market.

However, with fresh capital, a differentiated technology portfolio, and growing market recognition, Arbe Robotics is well-positioned to address these challenges and capitalize on emerging opportunities.

Commitment to Innovation

Innovation remains at the core of Arbe Robotics’ strategy. The company continues to invest heavily in research and development, aiming to push the boundaries of what radar technology can achieve in terms of resolution, accuracy, and intelligence.

This commitment not only supports current product offerings but also lays the groundwork for future applications beyond automotive, including smart infrastructure, robotics, and industrial automation.

Conclusion

The closing of the $18.5 million underwritten registered direct offering, including the full exercise of the underwriters’ over-allotment option, represents a significant achievement for Arbe Robotics Ltd. It underscores strong investor confidence, validates the company’s technological vision, and provides critical resources to support continued growth.

As demand for advanced perception solutions accelerates worldwide, Arbe Robotics is poised to play a key role in shaping the future of safe and autonomous mobility. With a strengthened financial foundation and a clear strategic focus, the company enters the next phase of its journey with momentum and optimism.

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