Xpeng Motors, the Chinese electrical car startup backed by Alibaba and Foxconn, has raised a recent injection of $400 million in capital and has taken on Xiaomi as a strategic investor, the corporate introduced.

The Series C consists of an unidentified group of strategic and institutional traders. XPeng Motors Chairman and CEO He Xiaopeng, who additionally participated within the Series C, stated the acquired robust help from a lot of its present shareholders. Xiaomi founder and CEO Lei Jun beforehand invested within the firm.

“Xiaomi Corporation and Xpeng Motors have achieved significant progress through in-depth collaboration in developing technologies connecting smart phones and smart cars,” Xiaomi’s Jun stated in a press release. “We believe that this strategic investment will further deepen our partnership with Xpeng in advancing innovation for intelligent hardware and the Internet of Things.”

The firm didn’t disclose what its post-money valuation is now. However, a supply accustomed to the deal stated it’s “better” than the 25 billion yuan valuation it had in its final spherical in August 2018.

The announcement confirms an earlier report from Reuters that cited nameless sources.

XPeng additionally stated it has garnered “several billions” in Chinese yuan of unsecured credit score traces from establishments such as China Merchants Bank, China CITIC Bank and HSBC. XPeng didn’t elaborate when requested what “several billions” means.

Brian Gu, Xpeng Motors Vice Chairman and President added that the corporate has been capable of hit most of its enterprise and financing targets regardless of financial headwinds, uncertainties within the world markets and authorities coverage adjustments which have had direct impression on general auto gross sales in China.

The spherical comes as XPeng prepares to launch its electrical P7 sedan in spring 2020. Deliveries of the P7 are anticipated to start within the second quarter of 2020.

Xpeng started deliveries of its first manufacturing mannequin the G3 2019 SUV in December and shipped 10,000 fashions by mid-June. The firm has since launched an enhanced model of the G3 with a 520 km NEDC driving vary.

The firm plans to launch the P7 sedan within the spring 2020 and can begin supply in 2Q 2020.

XPeng has stated it desires to IPO, however it’s unclear when the corporate may file to turn into a public firm. No particular IPO timetable has been set and a spokesperson stated the corporate is monitoring market circumstances carefully, however its present focus is on constructing core companies.

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