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

Xpeng Motors, the Chinese language electrical car startup backed by Alibaba and Foxconn, has raised a recent injection of $400 million in capital and has taken on Xiaomi as a strategic investor, the corporate introduced.

The Collection C contains an unidentified group of strategic and institutional traders. XPeng Motors Chairman and CEO He Xiaopeng, who additionally participated within the Collection C, mentioned the obtained robust help from lots of its present shareholders. Xiaomi founder and CEO Lei Jun beforehand invested within the firm.

“Xiaomi Company and Xpeng Motors have achieved important progress by means of in-depth collaboration in creating applied sciences connecting good telephones and good vehicles,” Xiaomi’s Jun mentioned in a press release. “We consider that this strategic funding will additional deepen our partnership with Xpeng in advancing innovation for clever {hardware} and the Web of Issues.”

The corporate didn’t disclose what its post-money valuation is now. Nevertheless, a supply acquainted with the deal mentioned it’s “higher” than the 25 billion yuan valuation it had in its final spherical in August 2018.

The announcement confirms an earlier report from Reuters that cited nameless sources.

XPeng additionally mentioned it has garnered “a number of billions” in Chinese language yuan of unsecured credit score traces from establishments corresponding to China Retailers Financial institution, China CITIC Financial institution and HSBC. XPeng didn’t elaborate when requested what “a number of billions” means.

Brian Gu, Xpeng Motors Vice Chairman and President added that the corporate has been capable of hit most of its enterprise and financing targets regardless of financial headwinds, uncertainties within the international markets and authorities coverage modifications which have had direct influence on general auto gross sales in China.

The spherical comes as XPeng prepares to launch its electrical P7 sedan in spring 2020. Deliveries of the P7 are anticipated to start within the second quarter of 2020.

Xpeng started deliveries of its first manufacturing mannequin the G3 2019 SUV in December and shipped 10,000 fashions by mid-June. The corporate has since launched an enhanced model of the G3 with a 520 km NEDC driving vary.

The corporate plans to launch the P7 sedan within the spring 2020 and can begin supply in 2Q 2020.

XPeng has mentioned it needs to IPO, however it’s unclear when the corporate may file to change into a public firm. No particular IPO timetable has been set and a spokesperson mentioned the corporate is monitoring market situations intently, however its present focus is on constructing core companies.

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