The Chinese electric car startup Xpeng Motors has completed a new financing round to the tune of 400 million US dollars. Xiaomi Corporation has been added as a new strategic investor.
As part of the Series C financing round, Xpeng Motors has raised a total of 400 million dollars in new capital. According to the company, the new financiers are “corporate and private investors and well-known private equity firms”, including Chinese electronics manufacturer Xiaomi.
Xpeng CEO He Xiaopeng, who also participated in the C financing round, sees the new investors and the “strong support of numerous existing shareholders” as confirmation of the company’s long-term strategy. “We are a strong believer that smart mobility and autonomous driving are going to transform our daily lives,” says He Xiaopeng. “And and we share the same vision with Xiaomi that technology innovation is the key driver in reshaping our future transportation. Xiaomi’s experience and insight in consumer behaviour, technology knowhow and market trends can add tremendous value to what Xpeng Motors is set to achieve.”
Xpeng Motors and Xiaomi had already worked together before the investment, for example on the intelligent integration of smartphones into the car. The progress made has convinced the company of the value of the investment, said Lei Jun, CEO of Xiaomi Corporation. “We believe that this strategic investment will further deepen our partnership with Xpeng in advancing innovation for intelligent hardware and the Internet of Things,” said Lei Jun, CEO of Xiaomi Corporation.
Brian Gu, Vice Chairman and President of Xpeng Motors, said: “Investors still have confidence in Xpeng Motors in the face of the stagnating Chinese market after the subsidy cuts. “We have demonstrated to our shareholders our ability to sustain our business in the face of these challenging conditions,” said Gu. “We have shown our shareholders that we can continue our business sustainably even in difficult conditions.
Xpeng gave an indication of the timetable for the start of future models. The P7 sedan will be shown in spring 2020 and deliveries are scheduled to start in the second quarter of the same year. Xpeng has already sold more than 10,000 of its SUV G3.