Chinese government-owned automotive manufacturer FAW Group has agreed to provide $260m of funding for China-based smart car developer Byton, Reuters reported on Tuesday, citing two people with knowledge of the matter.
The investment will be made as part of a larger series B round Byton aims to close at about $500m. A report last month first revealed FAW’s interest, but the deal was formalised last weekend according to the sources.
Founded in 2016 as Future Mobility, Byton is developing an electric sports utility vehicle that will incorporate features such as a gesture-based control system, a driver-assistance system, augmented reality mirrors in place of rear-view mirrors and a 49-inch electronic display on the dashboard.
The company is also working on a sedan and a minivan model, and Carsten Breitfeld, Byton’s co-founder and CEO, told Forbes this week that it intends to begin producing trial versions of its cars in volume by April 2019.
A February 2018 report suggested the company was targeting $300m to $400m for its latest round at a $1.2bn valuation, though the company has not confirmed the purported valuation.
Byton raised an initial $100m in funding across two rounds, which included $30m from car dealer China Harmony New Energy Auto Holding in late 2016, before pulling in $200m in an August 2017 round featuring retail group Suning and diversified holding company Fullshare Holdings, according to an earlier Reuters report.
Internet group Tencent and manufacturing services provider Foxconn had previously been identified as early backers, but according to Reuters they had to withdraw from investing due to regulatory issues concerning cash flow.
– Photo courtesy of Byton.