China's CHJ Automotive raises $474m Series B
Chinese electric vehicle maker CHJ Automotive has completed a RMB3 billion ($474 million) Series B round led by Matrix Partners China and Shougang Fund, an investment firm backed by state-owned steel producer Shougang Corporation.
Existing backers Source Code Capital, department store chain Intime Retail Group, BlueRun Ventures, FutureCap, and Funcity Capital also participated in the round. Including its Series A round – which closed in 2016 – and angel funding, CHJ has so far raised a total of RMB5.76 billion.
In line with the latest fundraising, the company announced a strategic partnership with ride-hailing app operator Didi Chuxing. The two companies will create a joint venture to customize production of electric cars for use in the shared transportation industry. In addition, they will cooperate in the development of intelligent networks, autonomous driving, and smart car operations.
Known as Chehejia in Chinese, CHJ was founded in July 2015 by serial entrepreneur Xiang Li, who previously set up Pcpop.com and US-listed Autohome.com. He also co-founded Nio, another electric car maker.
The company's first product, a seven-seat luxury-style sports utility vehicle (SUV), will complete its first engineering prototype in April for immediate road testing. The project began in early 2016 and is targeted at the mid-high-end Chinese family market, with each car priced at RMB250,000-400,000. The company is targeting an official launch in the second half of this year, with mass production to start in 2019.
Smart electric vehicles have attracted strong interest from PE and strategic investors across Asia. China is one of the largest markets globally for electric vehicles and hybrid cars, with several well-funded start-ups including Nio, Skio Matrix, Xpeng Motors, and WM Motor Technology addressing this space.
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