China EV maker Enovate raises $742m
Enovate, a Chinese new energy vehicle manufacturer, has raised RMB5 billion ($742 million) in a funding round led by local government industry guidance funds and state-owned banks.
The size of the round was not disclosed, but the start-up is targeting an IPO in 2021.
Founded in 2015, Enovate is a high-end brand under Zhejiang-based electric vehicle (EV) maker Dear CC. Enovate has now raised RMB11.5 billion in total. It closed a RMB2 billion Series A round in 2019 provided by listed corporates and government guidance funds. A pre-Series A came in 2018.
A pre-IPO round is in the process of being raised while preparations are made for the listing itself. This follows the launch in September of Enovate's first mass-produced model - the ME7 - priced at RMB218,800-289,800 after subsidies. The model is equipped with an interactive display, an artificial intelligence-enabled voice assistant, facial recognition, and an intelligent driving system.
The company said it would speed up the construction of its offline sales network, with plans for 30 sales outlets in 20 cities by the end of this year. By 2025, there will be more than 200 dealerships, covering all China's first-tier and second-tier cities and some third-tier cities. In addition, there are plans for a charging service system comprising fast-charging stations, dedicated charging piles at sales outlets, and public charging facilities. This will be done in partnership with the likes of State Grid and Star Charge.
Chinese electric vehicle (EV) manufacturer WM Motor recently raised RMB10 billion ($1.47 billion) in funding led by SAIC Motor and several government investment platforms. It said to be the largest single round in China's EV industry. Real estate developer Evergrande Group is also ramping up its EV ambitions, following its acquisition of Sweden's NEVS in June. It secured HK$4 billion ($516 million) in funding for Evergrande New Energy Vehicle.
China’s EV industry has recovered from a difficult 2019 and seen two IPOs in the US this year. First, Li Auto raised $1.1 billion through a NASDAQ offering in July, and then Xpeng tapped the New York Stock Exchange for $1.5 billion in August.
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