Part of the Optibus logo. Photo: Wikimedia Commons.

US-Israeli mobility technology company Optibus said on Wednesday it raised $40 million in a private funding round led by Insight Venture Partners and with a strategic investment from the Alibaba Group.

Existing investors, including Verizon Ventures, Pitango Venture Capital, New Era Capital and Sir Ronald Cohen, also participated in the round.

Details of Alibaba’s stake were not disclosed.

Optibus develops software to modernize mass transit systems and get them ready for smart city integration.

The company said its technology is being used by more than 300 cities to improve quality of service, reduce costs, streamline operations and reduce congestion and emissions.

Since its previous funding of $12 million in 2017, Optibus has expanded its presence in North America and Europe and seen its sales grow by 400 percent, it said.