Hong KONG / BEIJING (Reuters) – Chinese electric vehicle (EV) XPeng manufacturer, supported by Alibaba Holding Group Ltd., said on Wednesday that it raised $ 400 million from investors including Xiaomi Corp to fund its growth.
PHOTO FILE: A member of staff of Xpeng Motors stands near the charging station at the company's booth during media day for Shanghai auto show in Shanghai, China April 17, 2019. REUTERS / Aly Song
Sources were familiar with the topic for Reuters earlier about fundraising and about Xiaomi investor.
The fundraising is based on what bankers and industrial separators report as an increasingly demanding funding environment for EV start-up businesses in China that need to focus on the sector overcrowded and produce resolute arguments about future profitability despite cuts. governments on EV subsidies and plans to eliminate them.
XPeng, who announced the fundraising in a statement, didn't mention his valuation. But the sources said that the latest fundraising value added to the firm's five-year-old age, led by 42-year-old high-tech entrepreneur, Xiaopeng, at nearly $ 4 billion, higher than the 25 billion valuation. yuan ($ 3.57 billion) in the last round of funding.
The fundraising comes as XPeng, which is based in Guangzhou, which collected a designated capital, is going to public mulls in the coming years, with New York among one of the possible listing centers, the people said. He is considering a high-tech board Nasdaq-style Hong Kong and Shanghai, one of them said.
With Xiaomi, XPeng will explore more applications of smart phone technologies on smart connected vehicles, which one of the sources said.
“The signing of the new fundraising, which attracted not only new strategic investors such as Xiaomi Corporation but has received strong support from many of our current shareholders, is a renewed endorsement of our long-term strategy,” said XPeng chief executive. statement.
The proceeds will be used primarily to research and develop autonomous driving software, mass production of its G3 and sedan P7 sports-utility vehicle model, branding and expansion of its retail network, said one of the people, who refused to do so. be recognized as the question was private.
XPeng “several billions” of leading unsecured credit lines from banks, including China Merchant's Bank, China CITIC Bank and HSBC, said the statement, without specifying the figures.
The market of new Chinese energy vehicles, the largest in the world, has grown rapidly in recent years. However, fewer new energy vehicles (NEV) could be sold in China this year than in 2018, the country's biggest industry official warned that NEV sales dropped by 46% in October.
Many companies have hindered EV companies due to the ongoing profitability of investors.
XPeng, which sold about 13,000 vehicles in the first nine months of this year, is the Capital Group IDG Capital and Hillhouse among its supporters. It is one of several Chinese beginners who are trying to speed up battery powered technology and compete with world leaders including Tesla.
Reporting by Julie Zhu in Hong Kong and Yilei Sun in Beijing; Edited by Anantharaman Muralikumar
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