China-based electric vehicle developer WM Motor Technology has begun talks with investors including internet group Baidu to raise RMB2bn ($287m), Reuters has reported, citing two undisclosed sources.
The round is set to value WM at more than RMB20bn and will include fellow internet company Tencent. Baidu currently appears likely to lead the round with a RMB1bn investment, according to one source, though WM told Reuters it is in fact targeting a RMB3bn raise.
WM launched its first model, the EX5 plug-in electric sports utility vehicle, in April this year. In addition to an electric drivetrain, it features a smart interactive control system, and retails for a budget price.
The company currently has no dealerships and takes orders directly, but nevertheless intends to ship 10,000 cars by the end of 2018, with a further 90,000 projected for next year. The prospective funds would go to research and development as well as strengthening WM’s production facilities.
The round will follow an undisclosed amount of funding from Tencent and Wukuang Capital, a branch of metals trading firm China Minmetals, as well as Sequoia Capital China and China Structural Reform Fund in December 2017 that came in the wake of $1.5bn of earlier investment.
Approximately $1bn of the earlier funding came from unnamed investors in a 2016 round. Baidu and its Baidu Capital unit, technology and trading firm Susquehanna International Group, Amiba Capital, Chengwei Capital, Envision and Seven Seas Partners have all been named as existing investors.
Photo courtesy of Weltmeister Motor.
