(Yicai Global) Sept. 8 -- Geely Automobile Holdings, China’s biggest private carmaker, has invested USD50 million in Ecarx Technology in a fundraiser that values the smart auto technology company at USD3.3 billion.
Geely will buy 4.3 million of Ecarx’s Series B preference shares at USD11.57 apiece, the Hangzhou-based carmaker said in a filing late yesterday. Once the financing round is wrapped up, Geely will own about 1.5 percent of Ecarx.
Set up in 2016 by Shen Ziyu and Li Shufu, founder and chairman of Geely Auto’s parent company Geely Holding Group, Ecarx has completed five fundraisers. The latest was a USD200 million Series A+ round in February, led by state-backed China Reform Holdings. Li’s investment holding company Minghao Group is Ecarx’s majority shareholder with a 49.5 percent stake.
Automotive intelligence will play a leading role in the development of the global car industry, Geely said, with intelligent solutions provider Ecarx helping Geely to develop related products and services including vehicle chip-sets, smart cockpit solutions and smart vehicle software.
Ecarx’s net loss narrowed 30 percent to CNY478 million (USD74 million) last year, versus CNY674 million in 2019. Revenue was down 1 percent at CNY2.2 billion (USD340 million).
Geely Holding’s ride-hailing platform Cao Cao Mobility also announced on Sept. 6 that it had completed a CNY3.8 billion Series B financing round. Three Suzhou-based state-owned firms took part in that fundraiser.
Editor: Futura Costaglione