The company will employ this funding to boost the delivery of its hybrid electric powertrain to existing and new customers.

Commenting on the transaction XL Hybrids president and founder Tod Hynes said that this round of investment will enable the company to expand its business across the world.

"With support from our investors, XL Hybrids will continue to expand the availability of our hybrid powertrain and meet the demands of commercial fleets looking for a proven return on investment and reduced emissions," added Hynes.

Investors in this round include entrepreneurs and business executives from multiple industries such as automotive, energy, software and finance.

XL Hybrids’ hybrid electric powertrain reduces fuel consumption by 20% and can be installed in both new and existing vehicles.

The funding comes on the back of XL Hybrids completing the development and validation of its hybrid powertrain technology with multiple companies.