China-based smart electric vehicle (EV) developer Xiaopeng Motors has begun discussions with e-commerce firm Alibaba concerning a funding round sized at $600m to $700m, Technode reported today.
The round would value the company at almost $4bn and form part of a funding plan through which it plans to raise between $1.6bn and $2.7bn in funding in 2018, according to differing media reports in April this year.
Also known as Xpeng, Xiaopeng is working on a plug-in sports utility vehicle that will include a range of features including a smart-driving system, an intelligent parking mode, a touch-control panel and a roof-mounted camera.
Alibaba, contract manufacturer Foxconn and venture capital group IDG Capital co-led Xiaopeng’s last round, a $348m round in January this year that included Yunfeng Capital, China International Capital Corporation, Morningside Ventures, GGV Capital, Matrix Partners and entrepreneur Yuri Milner.
The company plans to use the funding to expand its team from 700 to 3,000 by the end of 2019, invest in research and development, upgrade its manufacturing capabilities and build out its sales, marketing and after-sale service departments.
The round would come weeks after Xiaopeng opened a US office in Silicon Valley. It is hoping to price its first model, the G3, at between $30,000 and $40,000.
Xiaopeng received $40m in series A funding from undisclosed investors in early 2016 before adding $324m in a June 2017 series B round led by on-demand chauffeured ride service UCar.
– Photo courtesy of Xiaopeng Motors.