NoTraffic’s $90M Series C Is the Biggest Bet Yet on Making City Traffic Lights Actually Smart

Key Takeaways

1. $90 million Series C raised by NoTraffic, led by PSG Equity, bringing total funding to $165.5 million since its 2017 founding
2. 1 in 10 U.S. cities already deployed on NoTraffic’s AI platform  the fastest adoption rate in the sector  with projections to reach 400–500 transportation departments across the U.S. and Canada by mid-2026
3. The company is generating “tens of millions of dollars” in revenue, doubling activity year-over-year in both usage and customer numbers
4. Funds will be used to scale North American deployments and expand its software-based “Mobility Store” of traffic management applications

Quick Recap

In one of the most significant smart-city funding rounds of 2026, NoTraffic, the Israeli-American AI traffic management startup, officially announced a $90 million Series C on March 24, 2026, as confirmed via its official press release on PR Newswire and covered by Axios Pro. The round was led by growth equity firm PSG Equity, with co-investment from M&G Investments, Grove Ventures, LifeX Ventures, Meitav Investment House, and Next Gear Ventures. CEO Tal Kreisler confirmed the entire raise is primary capital no debt, no secondary transactions underscoring strong investor conviction in NoTraffic’s growth trajectory.

How NoTraffic Is Turning Traffic Signals Into Living Software ?

NoTraffic’s platform represents a fundamental architectural shift in how cities manage intersections. Rather than running on fixed pre-programmed timing schedules a decades-old approach still dominant in most cities globally NoTraffic’s system transforms traffic lights into software-defined digital assets governed by real-time AI. The platform uses AI-powered sensors, edge computing, and cloud-based software to continuously monitor traffic volumes, vehicle trajectories, pedestrian activity, and even connected autonomous vehicles, dynamically adjusting signal timings on the fly.

At its heart is the MobilityOS a traffic management operating system that plugs into existing infrastructure without requiring full hardware replacement. Alongside it, the Mobility Store allows agencies to download new traffic management “apps” like transit signal priority, emergency vehicle preemption, and pedestrian safety alerts, without costly construction projects. NoTraffic also operates a 24/7 proactive Operations Center providing remote diagnostics and over-the-air software updates, functioning as a force multiplier for understaffed municipal teams.

The real-world results are already visible. The City of Phoenix one of the fastest-growing metros in the U.S. credits NoTraffic’s platform with measurable improvements in signal timing, commute delay reduction, and pedestrian wait times, per Phoenix Mayor Kate Gallego’s official endorsement. The company is now deployed in over 40 U.S. states and Canada, including major metros such as Houston, Phoenix, and Oklahoma.

Why This Moment Is the Perfect Timing for Smart Traffic ?

The funding lands at an inflection point for urban mobility infrastructure. The global traffic management system market is forecast to reach $42.3 billion in 2026, expanding to $68.7 billion by 2036 at a CAGR of 5.2%. Within the broader smart city tech sector in which Hayden AI’s investors valued at $748 billion the addressable opportunity for software-led infrastructure platforms is enormous.

Traffic agencies are simultaneously dealing with a three-pronged crisis: staffing shortages, increasingly unpredictable traffic patterns exacerbated by remote work, and rising public expectations around commute times and safety. Traditional infrastructure upgrades new sensors, roadworks, hardware replacements take years and cost hundreds of millions. NoTraffic’s pitch is a software shortcut: deploy adaptively on existing hardware, get measurable results fast, and iterate with over-the-air updates.

The Integrated Traffic Systems market adds further macro tailwind, projected to grow from $30.9 billion in 2026 to $51.6 billion by 2035, with 72% of urban areas actively adopting intelligent traffic solutions. North America holds 29% of market share and is the primary commercial battleground for NoTraffic’s near-term ambitions. With PSG Equity a growth equity firm that has backed 170+ software companies and facilitated 550+ add-on acquisitions leading this round, NoTraffic has a partner with deep SaaS scaling expertise.

Competitive Landscape & Comparison

NoTraffic’s two most direct mid-market competitors in the AI-powered smart traffic and urban mobility space are Hayden AI and Axilion Smart Mobility both deploying computer vision and AI specifically for city-level traffic and mobility optimization.

Hayden AI (San Francisco, USA) raised its own $90 million Series C in July 2024, led by TPG’s The Rise Fund, bringing its total funding to $173 million. It focuses primarily on transit enforcement (bus lane violations, parking, moving violations) using vehicle-mounted AI sensors deployed on transit buses, and has clients including NYC’s MTA, LA Metro, and Washington DC Metro.

Axilion Smart Mobility (Tel Aviv, Israel, TASE: AILN) is a publicly listed AI traffic signal optimization company with deployments in Israel, New York City’s DOT (pilot), and transit networks in Jerusalem and Haifa  but operates at a dramatically smaller scale, with a market cap of approximately $15.8 million and quarterly revenues around $2 million.

Strategic Analysis

NoTraffic clearly leads in North American deployment scale, revenue momentum, and AV/V2X infrastructure readiness making it the most compelling platform play for cities seeking an intersection-level operating system. Hayden AI “wins” in the transit enforcement vertical and in contracts with the largest legacy transit systems, where mobile, vehicle-mounted AI sensors outperform fixed intersection hardware. Axilion, while technologically credible and publicly traded, operates at a fraction of the commercial scale of either competitor and remains primarily a regional player pending broader international expansion.

Sci-Tech Today Takeaway

In my experience covering smart city and deep tech funding rounds, this one hits differently. I think NoTraffic’s $90M Series C is a genuinely big deal not just because of the dollar figure, but because of what it represents structurally. Traffic signal infrastructure is one of the last major analog layers of urban life, and I’ve seen countless startups try and fail to crack it because the sales cycles are brutal, the procurement is governmental, and the “last mile” of actual deployment is messy. NoTraffic’s claim that 1 in 10 U.S. cities is already a paying customer achieved in under three years is frankly extraordinary for this sector.

I generally prefer to stay cautious on “smart city” plays because the graveyard of over-funded, under-deployed urban tech is long. But NoTraffic’s metrics doubling annually, generating tens of millions in revenue, PSG Equity (a pure SaaS growth investor) writing the lead check read bullish to me. The framing of traffic lights as “the last major analog layer of urban infrastructure” being digitized is not hype; it’s a real, defensible secular trend, especially as autonomous vehicles need real-time V2X communication from the roadside.