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

Xpeng Motors, the Chinese electrical car startup sponsored via 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 Series C contains an unidentified team of strategic and institutional traders. XPeng Motors Chairman and CEO He Xiaopeng, who additionally participated within the Series C, stated the gained sturdy toughen from lots of its present shareholders. Xiaomi founder and CEO Lei Jun up to now invested within the corporate.

“Xiaomi Corporation and Xpeng Motors have completed vital growth via in-depth collaboration in growing applied sciences connecting good telephones and good automobiles,” Xiaomi’s Jun stated in a commentary. “We imagine that this strategic funding will additional deepen our partnership with Xpeng in advancing innovation for clever {hardware} and the Internet of Things.”

The corporate didn’t expose what its post-money valuation is now. However, a supply conversant in the deal stated it’s “higher” than the 25 billion yuan valuation it had in its final spherical in August 2019.

The announcement confirms an previous document from Reuters that cited nameless resources.

XPeng additionally stated it has garnered “a number of billions” in Chinese yuan of unsecured credit score strains from establishments similar to China Merchants Bank, China CITIC Bank and HSBC. XPeng didn’t elaborate when requested what “a number of billions” method.

Brian Gu, Xpeng Motors Vice Chairman and President added that the corporate has been in a position to hit maximum of its industry and financing goals in spite of financial headwinds, uncertainties within the international markets and govt coverage adjustments that experience had direct have an effect on on total auto gross sales in China.

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

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

The corporate plans to release the P7 sedan within the spring 2020 and can get started supply in 2Q 2020.

XPeng has stated it desires to IPO, but it surely’s unclear when the corporate may record to turn out to be a public corporate. No particular IPO timetable has been set and a spokesperson stated the corporate is tracking marketplace prerequisites intently, however its present focal point is on development core companies.