(Yicai Global) Aug. 3 -- China’s first national-level green investment fund has stumped up funds for Avatr Technology, a premium electric vehicle brand under Changan Automobile, in what the carmakers said was the fund’s first investment in the new energy vehicle sector.
The National Green Development Fund invested CNY480 million (USD71.1 million) in Avatr’s CNY2.5 billion (USD337.2 billion) Series-A financing round, the Chongqing-based EV maker said yesterday, which has boosted its valuation to CNY10 billion (USD1.5 billion).
Existing shareholders Changan Auto and China South Industries Assets Management contributed CNY1.2 billion and CNY100 million, respectively. Institutional investors China Merchants Jintai Capital Management and SDIC Juli Investment Management also took part in the fundraiser.
The NGDF was set up by China’s finance and environment ministries and the municipality of Shanghai in July 2020. It secured CNY88.5 billion in initial funding and pledging to invest in green transportation and clean energy among other environmental sectors.
Following Avatr’s fundraiser, NGDF now holds 5.4 percent of the EV brand. Changan Auto owns 41 percent, up from 39 percent. The second-largest shareholder, Contemporary Amperex Technology, did not participate in the round, so its stake fell to 17.1 percent from 24 percent. China South Industries Assets Management’s stake was diluted to 7.4 percent from 8.7 percent.
Securing more funding has strengthened Avatr’s growth potential and will further accelerate the firm’s research and development, product design, marketing and branding, and channel building, it said. Changan Auto’s investment will not only help Avatr in terms of integration of capital and resources, but also facilitate the further development of the Changan brand.
Founded in 2018, Avatr makes cars based on CHN, a smart platform co-developed by Changan, Huawei Technologies, and CATL that was launched at the annual Chongqing International Auto Exhibition on June 25.
The Avatr 11 and the limited edition Avatr 011, the first electric crossover coupe sports-utility vehicle developed by Avatr, will go on sale on Aug. 8, with deliveries to begin this year. The first batch of offline experience centers will also open around the same time.
Editors: Xu Wei, Shi Yi, Futura Costaglione