China drone start-up EHang gets $42m Series B round

GGV Capital, ZhenFund, Lebox Capital, OFC and PreAngle also took part in the round. EHang said in a statement that the current valuation is 100 times higher than 16 months ago when the start-up was incorporated. The latest investment came in conjunction with four senior executives in the firm, who previously worked for 21Vianet, Lenovo Group and Microsoft China.

EHang, which has offices in San Francisco and China, is best known for its flagship product - Ghost Drone - and sells to more than 70 global countries. Unlike other drones, Ghost Drone doesn't require additional assembly or a separate remote control. It can operate via a mobile app, which sends an alert when the battery is low.

Earlier this year, the company received $10 million in a Series A round led by GGV. This latest round will be used to hire more staff, build an unmanned aerial vehicle (UAV) ecosystem, and expand business operations into traditional industries like agriculture and forestry, geographic mapping and express logistics.

Citing figures from the EVTank, EHang noted that global sales of civil drones last year reached 378,000 units, accounting for 96% of the whole UAV market. It is estimated that the civil drones market will reach $25.9 billion in 2020 with 4.33 million units sold.

EHang isn't the only Chinese drone maker to receive VC funding. Three months ago, Accel Partners provided $75 million to DJI at a reported valuation of $8 billion. The two groups then agreed to form a $10 million fund that backs other start-ups in the space.

Last year, Chengwei Capital Partners invested $20 million in a Series A round for XAircraft Aerial Solutions, a Chinese multi-rotor and drone maker.

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• Topics
• Greater China
• Venture
• Technology
• Expansion
• China
• Venture
• Technology
• GGV Capital
• ZhenFund
• Growth capital