Xpeng Motors, the Chinese startup of electric vehicles backed by Alibaba and Foxconn, has acquired a new injection of $ 400 million in capital and has taken on Xiaomi as a strategic investor, the company announced.
The Series C includes an unidentified group of strategic and institutional investors. XPeng Motors chairman and CEO He Xiaopeng, who also participated in Series C, said it received strong support from many of its current shareholders. Xiaomi founder and CEO Lei Jun previously invested in the company.
"Xiaomi Corporation and Xpeng Motors have made significant progress through an in-depth collaboration on developing technologies that connect smartphones and smart cars," Xiaomi's Jun said in a statement. "We believe this strategic investment will further deepen our collaboration with Xpeng to foster innovation for intelligent hardware and the Internet of Things."
The company did not disclose what the valuation of down payment is now. However, a source familiar with the deal said it is "better" than the $ 25 billion valuation it had in its last round in August 201
The announcement confirms a previous report by Reuters citing anonymous sources.
XPeng also said it has received "several billion" in Chinese yuan from unsecured credit lines from institutions such as China Merchants Bank, China CITIC Bank and HSBC. XPeng did not elaborate when asked what "multi-billion" means.
Brian Gu, Xpeng Motors vice president and president added that the company has managed to achieve most of its business and financing goals despite financial headwinds, uncertainty in global markets and government policy changes that have had a direct impact on overall car sales. in China.
The round comes as XPeng prepares to launch its electric P7 since the spring of 2020. Deliveries of the P7 are expected to begin in the second quarter of 2020.
Xpeng began delivering its first production model G3 2019 SUV in December and sent 10,000 models in mid-June. The company has since released an improved version of the G3 with a 520 km NEDC driving range.
The company plans to launch the P7 sedan in the spring of 2020 and will begin delivery in 2Q 2020.
XPeng has stated that it wants to be listed, but it is unclear when the company can file to become a public company. No specific IPO schedule has been set, and a spokesperson said the company is monitoring market conditions closely, but the current focus is to build core businesses.