BENGALURU (Sept 10 (Reuters) - The Boring Company, a tunnel construction startup founded by billionaire Elon Musk, has raised US$3 billion in a new funding round that values it at US$23 billion, according to a statement on Wednesday.

The funding round was led by the United Arab Emirates and affiliated investment entities.

Other participants included Human Capital, Vy Capital, Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Temasek, Shamal Holding and Baron Capital.

Proceeds would support an expanded partnership to develop more than 150 km (93 miles) of underground infrastructure across the UAE, building on its previously announced Dubai Loop project.

The Boring Company also plans to use the funds to increase hiring across engineering, production and operations while expanding Loop projects in Las Vegas, Nashville and Dubai.

Last year, the company and Dubai's Roads and Transport Authority signed a preliminary agreement to build the Dubai Loop, an underground high-speed transport network.

The latest fundraising marks a sharp increase in the company's valuation from 2022, when it was valued at US$5.7 billion following a US$675 million funding round.

Musk founded The Boring Company in 2017 after complaining about traffic congestion, subsequently proposing a network of underground transportation routes.

Uploaded by Liza Shireen Koshy