Chinese Electric Bike Battery Swap Firm Immotor Raises Large Sum in New Funding Round
Lv Qian
DATE:  Sep 21 2020
/ SOURCE:  Yicai
Chinese Electric Bike Battery Swap Firm Immotor Raises Large Sum in New Funding Round Chinese Electric Bike Battery Swap Firm Immotor Raises Large Sum in New Funding Round

(Yicai Global) Sept. 21 -- Shenzhen Immotor Technology has raised hundreds of millions of Chinese yuan in series-C1 financing as its electric bike battery swap concept continues to excite investors, the firm announced today.

The funds raised will mostly be used to develop innovative products and increase the density of its battery exchange network, said founder and Chief Executive Daniel Huang.

New investors include China Southern Power Grid Capital Holdings, French venture capital firm Idinvest Partners, the Pksha Sparx Algorithm Fund and US independent asset manager 57Stars.

There were also several existing investors who took part, such as the Asia Green Fund, Qingdao Yongwan Capital Asset Management Group as well as South Korean private equity firm Mirae Asset Venture Investment.

While Immotor has yet to turn a profit, its eSwap, or battery exchange, service holds sway in China's crowded cities where many businesses and individuals rely on the electric-powered bike to get them quickly from A to B. The firm serves big food delivery companies such as Meituan Dianping and Ele.me as well as couriers including SF Express, not to mention countless commuters.

In five or six years' time, Immotor's business-to-business service should be worth as much as CNY50 billion (USD7.4 billion) while its business-to-consumer mode will top CNY100 billion, Huang said.

The firm earns between CNY2 (USD0.30) and CNY3 per battery charge. The roughly 250 million to 300 million users in China change battery 100 million times a day, amounting to 36.5 billion battery swaps a year and giving the company an annual revenue of between CNY70 billion (USD10.3 billion) to CNY100 billion.

The Chinese government is keen to encourage battery-swap technologies and has added battery swap stations to its list of new infrastructures. It has exempted electric vehicles that support battery swaps from dwindling subsidies and has introduced the country’s first standards for battery exchange safety, according to a report by Essence Securities.

Editors: Zhang Yushuo, Kim Taylor

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Keywords:   Battery Exchange,E-Bike