Xpeng, an electrical automobile startup run by former Alibaba government He Xiaopeng, stated Monday it has raised round $500 million in a Sequence C+ spherical to additional develop fashions tailor-made to China’s tech-savvy middle-class shoppers.
The announcement adopted its Sequence 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 brand new proceeds convey the five-year-old Chinese language startup’s to-date fundings introduced to $1.7 billion.
Buyers within the newest spherical embrace Hong Kong-based non-public fairness agency Aspex Management; the storied American tech hedge fund Coatue Management; China’s high non-public fairness fund Hillhouse Capital; and Sequoia Capital China. The opposite current big-name backers are Foxconn, Xiaomi, GGV Capital, Morningside Enterprise Capital, IDG Capital, and Primavera Capital.
Regardless of the sizable spherical, Xpeng is headed for a slew of challenges. Electrical automobile gross sales in China have shrunk within the wake of diminished authorities subsidies set in movement final 12 months, and the COVID-19 pandemic is predicted to additional dampen demand because the economic system weakens.
Xpeng’s Chinese language 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 production for inside reorganization.
Xpeng’s different rivals appear to have confirmed extra resilient. In April, Nasdaq-listed Nio secured a $1 billion investment for its Chinese language entity, whereas Li Auto ventured to file for a U.S. public listing in July.
Xpeng claims it has thus far been in a position to face up to coronavirus challenges. In Could, the corporate obtained a production license for its fully-owned automobile plant in a metropolis close to its Guangzhou headquarters, signaling its diminished dependence on manufacturing accomplice Haima Car.