Chinese electric vehicle startup
WM Motor
just pocketed an outsize investment to fuel growth in a competitive landscape increasingly coveted by foreign rival Tesla
. The five-year-old company raised 10 billion yuan ($1.47 billion) in a Series D round, it announced
on Tuesday, which will pay for research and development, branding, marketing and expansion of sales channel.
WM Motor, backed by Baidu and Tencent, is one of the highest funded EV startups in China alongside
NIO
, Xpeng
and Li Auto
, all of which have gone public in New York. With its latest capital boost, WM Motor could be gearing up for an initial public offering. As Bloomberg’s sources in July said
, the company was weighing a listing on China’s Nasdaq-style STAR board as soon as this year.
Days before its funding news, WM Motor
unveiled
its key partners and suppliers: Qualcomm Snapdragon’s cockpit chips
will power the startup’s in-cabin experience; Baidu’s Apollo autonomous driving system
will give WM vehicles self-parking capability; Unisplendour
, rooted in China’s Tsinghua University, will take care of the hardware side of autonomous driving; and lastly, integrated circuit company Sino IC Leasing
will work on “car connectivity” for WM Motor, whatever that term entails.
It’s not uncommon to see the new generation of EV makers seeking external partnerships given their limited experience in manufacturing. WM Motor’s rival Xpeng similarly
works with Blackberry, Desay EV and Nvidia
to deliver its smart EVs.
WM Motor was founded by automotive veteran
Freeman Shen
, who previously held executive positions at Volvo, Fiat and Geely in China.
The startup recently announced an ambitious
plan
for the next 3-5 years to allocate 20 billion yuan ($2.95 billion) and 3,000 engineers to work on 5G-powered smart cockpits, Level-4 driving and other futuristic auto technologies. That’s a big chunk of the startup’s total raise, which is estimated to be north of $3 billion, based on Crunchbase data
and its latest funding figure.
Regional governments are often seen rooting for companies partaking in China’s strategic industries such as semiconductors and electric cars. WM Motor’s latest round, for instance, is
led by
a state-owned investment platform and state-owned carmaker SAIC Motor, both based in Shanghai where the startup’s headquarters resides. The city is also home to Tesla’s Gigafactory
where the American giant churns out made-in-China vehicles.
In July, the Chinese EV upstart
delivered
its 30,000th EX5 SUV vehicle, which comes at about $22,000
with state subsidy and features the likes of in-car video streaming and air purification. The company claimed
that parents of young children account for nearly 70% of its customers.