Xpeng, an electric vehicle startup run by former Alibaba executive He Xiaopeng, said on Monday it had raised approximately $ 500 million in a C + Series round to further develop tailor-made models for tech-savvy Chinese middle-class consumers. .
The announcement followed the $ 400 million C series that ended last November. A source told ProWellTech that the company's valuation at the time had passed the 25 billion yuan ($ 3.57 billion) round raised in August 2018.
The new proceeds bring the five-year Chinese startup's current funding to $ 1.7 billion.
Last round investors include Aspex Management, a private equity firm based in Hong Kong; the legendary American technology hedge fund Coatue Management; The main Chinese private equity fund Hillhouse Capital; and Sequoia Capital China. The other big name supporters are Foxconn, Xiaomi, GGV Capital, Morningside Venture Capital, IDG Capital and Primavera Capital.
Despite the considerable round, Xpeng is ready for a series of challenges. Electric vehicle sales in China declined following the reduction in state subsidies that started last year and the COVID-19 pandemic is expected to further reduce demand as the economy weakens.
Xpeng Byton's Chinese rival, which has heavyweight supporters such as Tencent, FAW Group and Foxconn, is already showing signs of tension as he shot about half of his North American-based 450 staff citing the impact of the coronavirus. In June, the company slowed down production for internal reorganization.
The other Xpeng competitors seem to have proven more resistant. In April, the Nasdaq-listed Nio made an investment of $ 1 billion for its Chinese entity, while Li Auto ventured to present a public listing in the United States in July.
Xpeng says he has so far been able to resist the challenges of the coronavirus. In May, the company obtained a production license for its owned auto plant in a city near Guangzhou headquarters, signaling its reduced dependence on production partner Haima Automobile.
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