Xpeng, an electrical car startup run by former Alibaba government He Xiaopeng, stated Monday it has raised round $500 million in a Series C+ spherical to additional develop fashions tailor-made to China’s tech-savvy middle-class customers.
The announcement adopted its Series C spherical of $400 million closed final November. A supply advised TechCrunch that the corporate’s valuation on the time had exceeded the 25 billion yuan ($3.57 billion) spherical raised in August 2018.
The new proceeds convey the five-year-old Chinese startup’s to-date fundings introduced to $1.7 billion.
Investors within the newest spherical embody Hong Kong-based personal fairness agency Aspex Management; the storied American tech hedge fund Coatue Management; China’s prime personal fairness fund Hillhouse Capital; and Sequoia Capital China. The different present big-name backers are Foxconn, Xiaomi, GGV Capital, Morningside Venture Capital, IDG Capital, and Primavera Capital.
Despite the sizable spherical, Xpeng is headed for a slew of challenges. Electric car gross sales in China have shrunk within the wake of decreased authorities subsidies set in movement final 12 months, and the COVID-19 pandemic is anticipated to additional dampen demand because the economic system weakens.
Xpeng’s Chinese rival Byton, which counts heavyweights backers like Tencent, FAW Group, and Foxconn, is already exhibiting indicators of pressure because it furloughed about half of its 450 North America-based employees citing coronavirus influence. In June, the corporate put the brakes on manufacturing for inner reorganization.
Xpeng’s different opponents appear to have confirmed extra resilient. In April, Nasdaq-listed Nio secured a $1 billion funding for its Chinese entity, whereas Li Auto ventured to file for a U.S. public itemizing in July.
Xpeng claims it has to this point been capable of stand up to coronavirus challenges. In May, the corporate obtained a manufacturing license for its fully-owned automobile plant in a metropolis close to its Guangzhou headquarters, signaling its decreased dependence on manufacturing associate Haima Automobile.