Chinese EV startup XPeng Motors raises $400 million, takes on Xiaomi as strategic investor

by admin on Nov 13, 2019
Image Source : Xpeng Motors

XPeng Motors, the Chinese electric vehicle start-up backed by Alibaba as well as Foxconn, has elevated a fresh injection of $400 million in the capital and also has tackled Xiaomi as a strategic capitalist, the business introduced.

Series C consists of an unknown team of calculated and institutional investors. XPeng Motors chairman and also CEO He Xiaopeng that likewise took part in Series C said they obtained reliable support from a lot of its existing investors. Xiaomi creator and even CEO Lei Jun previously purchased the business.

“Xiaomi Corporation and Xpeng Motors have achieved significant progress through in-depth collaboration in developing technologies connecting smartphones and smart cars,” Xiaomi’s Jun said in a statement. “We believe that this strategic investment will further deepen our partnership with Xpeng in advancing innovation for intelligent hardware and the Internet of Things.”

The company didn’t divulge what its post-money appraisal is now. A resource familiar with the bargain claimed it is “much better” than the 25 billion yuan evaluation it had in its last round in August 2018.

The news verifies an earlier report from Reuters that mentioned anonymous sources.

XPeng likewise claimed it has garnered “several billion” in Chinese yuan of the unsafe line of credit from institutions such as China Merchants Bank, China CITIC Bank, and also HSBC. XPeng did not specify when asked what “numerous billions” implies.

Brian Gu, XPeng Motors vice chairman as well as president, included that the company has actually been able to hit the majority of its business and also financing targets regardless of economic headwinds, unpredictabilities in the international markets as well as federal government plan changes that have actually had straight influence on overall auto sales in China.

The round comes as XPeng prepares to launch its electric P7 sedan in springtime 2020. Shipments of the P7 are anticipated to begin in the second quarter of 2020.

XPeng started deliveries of its very first production version, the G3 2019 SUV, in December, and also shipped 10,000 versions by mid-June. The business has since released a boosted variation of the G3 with a 520 kilometers NEDC driving variety.

XPeng has claimed it wishes to IPO, yet it’s vague when the firm could submit to come to be a public company. No specific IPO timetable has been established as well as a speaker claimed the firm is keeping an eye on market problems very carefully. Still, its present focus is on structure core companies.

Series C consists of an unidentified group of institutional as well as critical investors. XPeng Motors chairman, as well as CEO He Xiaopeng that additionally participated in the Series C, claimed they got strong support from many of its existing investors. Xiaomi founder and also CEO Lei Jun formerly spent in the business.