H&Q backs US, China-based EV player

The firm is investing in the company for the first time alongside an entity known as Jiaxing Daxin Investment Partnership. The commitment represents the first trahche of a Series C round that is expected to close at $15 million in the fourth quarter of 2016.

The capital will be used to accelerate plans for mass production of EDI's drivetrain product line, ancillary control software and exportable power technology. It will also go towards expanding the company's manufacturing footprint in China and the US.

EDI develops and markets hybrid-electric drivetrains for end-customers and EV manufacturers seeking to meet emissions requirements. The company said its Series C funding plans were expedited to keep pace with an acceleration in customer orders related to continuing change in government and industry environmental regulations. Its Asian markets include passenger, mass transit and work truck vehicles, while North American sales encompass agricultural and port industries.

"We were impressed by the Efficient Drivetrains business strategy, vision and portfolio of technology," Benson He, managing director at H&Q, said in a statement. "It presented a very compelling investment opportunity that we were driven to take part in. EDI has redefined the approach to alternative fuel drivetrains and vehicle technology, and we believe they have the foothold in the marketplace."

H&Q was founded in 1985 by Ta-lin Hsu, who will be joining the EDI board alongside Robert Shen, the firm's Shanghai managing director. It has managed 26 funds with total assets of $3.5 billion across offices in China, Hong Kong, Taiwan, Korea and the US. Previous activity in the EV space has included an investment in Hong Kong-based lithium battery company, Amperex Technology.

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• Topics
• Greater China
• North America
• Cleantech
• Industrials
• Expansion
• China
• USA
• H&Q Asia Pacific
• automobiles
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