China-based autonomous driving technology developer Zongmu Technology has secured over RMB1bn ($157m) in a series E round featuring a fund backed by shipping firm Cosco Shipping Development, Bloomberg reported yesterday.
Donyang State-Owned Assets Investment and Zhejiang Caitong Capital Investments co-led the round, which included Sunic Capital, Zuoyo Capital and China Cinda Asset Management.
Founded in 2013, Zongmu designs and produces technology such as cameras, sensors, radars, mapping and artificial intelligence technology to support self-driving systems.
The company plans to use the series E proceeds to boost its research and development as well as to set up a manufacturing hub in the city of Zhejiang capable of producing 2 million sets of autonomous driving systems each year.
Zongmu closed its $190m series D round in June 2021 that included a first close led by automotive component manufacturer Denso with backing from construction firm Huantaihu Group, Jadex Capital and Liangjiang Capital. The second tranche was co-led by Cowen Capital and Gaoyuan Capital.
A third tranche of the round was funded by electronics manufacturer Xiaomi’s Hubei Xiaomi Changjiang Industrial Fund and included semiconductor producer Qualcomm’s invetsment arm, Qualcomm Ventures, as well as Legend Capital, the venture capital firm formed by conglomerate Legend Holdings, and a fund managed by conglomerate Fosun.
Qualcomm Ventures had previously led a $14.5m series C-plus round for Zongmu in 2019, with backing from Legend Capital. The latter had co-led the company’s $14m series B round two years earlier with an unnamed China-based private equity firm.