Leap Motor, a China-based electric car developer backed by corporates Shanghai Electric and CRRC Corporation, is looking to raise RMB2.5bn ($372m) in funding, Reuters reported today, citing three people with knowledge of the matter.
The round is set to value the company at between $1.5bn and $1.65bn pre-money, according to two of the sources. The third claimed it will begin officially raising the money next month and plans to close the round by the end of September this year.
Co-founded by video surveillance technology provider Dahua Technology, Leap has developed a plug-in electric vehicle called the Leap Motor S01 that is sold in the low-to-mid price range.
The funding will partly be used for research and development but will also support the commercialisation of the S01. It officially went on sale in January this year, and deliveries are slated to begin in Q2 2019.
The company is seeking funding from domestic and international investors, and has hired Deutsche Bank and Huatai United Securities to advise it on the fundraising. Its first external funding was a $56.7m pre-series A round led by venture capital firm Sequoia Capital China in late 2017.
Energy utility Shanghai Electric and rolling stock manufacturer CRRC Corporation subsequently contributed to Leap’s $288m series A round in November 2018, investing alongside Sequoia China, brokerage Industrial Securities and asset manager Gopher Asset at a $1.15bn valuation.
