China UAV player United Aircraft raises $290m
United Aircraft, a Chinese start-up specialising in unmanned aerial vehicles (UAVs), has raised a Series D of CNY 2bn (USD 290m) from an assortment of local investors.
Participants in the round include National Manufacturing Fund, Chengdu Heavy Industry Qingyue Fund, Anhui Province Quantum Fund, and Shenzhen-based CoStone Capital.
Founded in 2012, United Aircraft initially focused on unmanned helicopters. It has supplied products to customers in areas ranging from national defence, customs, and law enforcement to transportation, powerline monitoring, and geological exploration.
The new capital will go towards the development of a next-generation tilt-rotor aircraft which combines the vertical takeoff and landing and hovering capabilities of a helicopter with the high speed and long-distance cruising capabilities of a turboprop.
Test flights are scheduled for completion in 2025. It represents a departure from United Aircraft's traditional UAV domain, but the company believes the new model will become a popular choice in the private aircraft category.
The shift in focus may relate to a desire for faster commercialisation. Electric vertical take-off and landing (eVTOL) solutions have emerged as a prominent theme among private equity investors globally, and some Chinese companies are interested in expanding electrification from vehicles to aircraft.
While eVTOLs are often compared to electrified helicopters and can fulfil most of the same functions, they are unable to hover over sites. However, eVTOLs are regarded as a safer option for tourists wanting to sight-see from the skies.
Going electric means a simpler design – hence the improved safety level because there is less scope for malfunction – and a much lower cost. Space is another advantage. Conventional small aircraft tend to be single-engine or twin-engine; eVTOLs allow for multiple choices.
Recent investments in the space include a CNY 100m pre-Series A for Shanghai-based TCab Tech. Last year, there were also early-stage rounds for Zero Gravity and Volant. They are following in the footsteps of AutoFlight, which was founded in 2017 and received a Series A of USD 100m in 2021.
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