Sequoia, Legend back China autonomous driving player Inceptio

Additional contributions came from Chow Tai Fook Enterprises, Cedarlake Capital, supply chain solutions and financing provider Wuchan Zhongda Group, and an unnamed international equity fund. Numerous existing investors re-upped, including Meituan, Nio Capital, Eight Roads, and Broad Vision Funds, according to a statement.

It follows a USD 270m Series B in August 2021, led by JD Logistics, Meituan, and PAG.

At the end of last year, Inceptio began mass production of a China’s first heavy-duty trucks capable of level-three autonomy, where vehicles have conditional autonomy but human override is still required. This is the product of a three-year collaboration with state-owned Dongfeng Commercial Vehicles on this project. The trucks have already been deployed on line-haul freight routes in China.

Inceptio has separate projects with other domestic original equipment manufacturers (OEMs), including China National Heavy Duty Truck.

The company is also building a full-stack autonomous driving system – known as Xuanyuan – with support from local cargo handlers and fleet operators. The goal is to provide a transportation-as-a-service (TaaS) freight network – an asset-light model is expected to generate revenue earlier than in-house managed fleets.

The proceeds of the Series B extension will go towards the acceleration of Xuanyuan, the introduction of more mass-produced autonomous driving truck models, and contributing to the development of electrified mobility solutions.

Autonomous trucking appeals to investors and entrepreneurs because of its large addressable market, the ease of navigating highways versus city streets, and the fact that there are fewer concerns around driver or passenger safety when transporting goods. Inceptio's rivals include TuSimple and Plus. Last year, the former went public in the US and the latter secured USD 220m in funding.

The latest round pushes Inceptio’s overall funding past the USD 680m mark. Other investors include Deppon Express, IDG Capital, CMB International, CMG-SDIC Capital, Mirae Asset, Hidden Hill Capital, Eastern Bell Capital, and domestic vehicle battery manufacturer CATL.

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• Topics
• Greater China
• Expansion
• Technology
• China
• autonomous driving
• automobiles
• Legend Capital
• Sequoia Capital
• Growth capital
• Meituan-Dianping
• Nio Capital
• Eight Roads