Chinese electric car start-up WM Motor expects to raise a total of 500 million US dollars from investors in a two-part Series D funding round. WM Motor plans to invest in the development of autonomous driving, as well as other technologies and products, in addition to the expansion of its sales and service channels.
WM Motors says that $300 million (about 260 million euros) is to be raised in the D1 round, followed by another $200 million (173 million euros) in the D2 round. The D1 round is already underway and is led by PCCW and Shun Tak Holdings.
The company says it expects “several other renowned international investors to join the D2 series”. “We are extremely honoured to have been invested in by such renowned global investors, especially during this period of industry consolidation and rapid growth coupled with intensified competition,” said Freeman H. Shen, founder and CEO of WM Motor. “The estimated total amount financed during this round resembles the largest single investment from the private equity community towards the mainland China EV market during the past 12 months. It marks a significant milestone for our Company.”
WM Motor is one of the emerging electric car start-ups in China. The company says it has delivered over 70,000 vehicles, including over 40,000 EX5s, since the launch of the WM EX5 electric SUV. In September, WM Motor sold 5,005 units. After Nio (10,628 vehicles in September), Xpeng (10,412 units), Hozon (7,699 vehicles) and Li Auto (7,094 cars), WM Motor is the number five e-mobility start-up in China – based on September figures.
According to CFO John Bi, this means WM Motor has already surpassed its full-year 2020 deliveries in September – which totalled 22,495 vehicles, as reported. “With the entire industry facing shortages of chips and key components since the beginning of the year, we have been able to secure our supply chain and continue to deliver vehicles by relying on the support of our core management team,” Bi said. “Despite the challenges, we have successfully delivered a positive cash gross profit. Looking ahead, we will continue to expand our distribution network, improve operational efficiency and strengthen customer loyalty, laying a solid foundation to achieve an ambitious target in 2022.”
Currently, WM Motor only offers its vehicles in China. However, a cooperation agreement signed in January 2021 with Italy’s Enel X includes expansion into markets such as Europe, Southeast Asia, the Middle East and South America.
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