Nio Capital, an investment firm co-founded by China-based smart electric vehicle developer Nio, has approached investors about raising a $500m fund targeting the automotive sector, PEHub reported yesterday citing two insiders.
Nio Capital was launched by Nio in partnership with Sequoia Capital and Hillhouse Capital in December 2016. Its inaugural, renminbi-denominated fund has a target size of RMB10bn ($1.5bn).
Nio Capital has invested between $303m and $455m through the renminbi fund in 15 startups, with recent deals including a $57m series B round for autonomous driving technology developer Momenta last month.
The $500m vehicle will focus on China-based companies exploiting overseas structures, such as variable-interest entities, and international businesses.
Originally known as NextEV, Nio has developed an electric, seven-seat sports car equipped with a personalised digital assistant. The vehicle, dubbed ES8, is due for release to the mass market next month.
Nio has also created a supercar dubbed EP9, which has achieved the fastest speeds of any electric vehicle to date. An autonomous, electric vehicle is scheduled for a US release by 2020.
The company has reportedly raised $2bn to date. Its shareholders include internet company Tencent, which led a $1bn funding round earlier this month with participation from Lone Pine Capital, Citic Capital and Baillie Gifford.
Other backers include internet company Baidu, e-commerce group JD.com, consumer electronics provider Lenovo, IDG Capital, TPG, Hillhouse Capital, GIC Private, TPG, Hop Investment Management, Joy Capital and Shunwei Capital.
Temasek, the investment firm owned by Singapore’s government, has also invested in Nio.