China’s EV startup Xpeng pulls in $500 million Series C+

China’s EV startup Xpeng pulls in $500 million Series C+

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.

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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.


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