Leapmotor to raise RMB2.5 billion for Series A round

Shanghai (Gasgoo)- Hangzhou-based Chinese new energy carmaker Leapmotor said in a recent interview that it has raised nearly RMB2 billion for its Series A round financing and the target value totals RMB2.5 billion.

It is reported that the latest round of fundraising is led by Shanghai Electric Group Co.,Ltd  (Shanghai Electric) and involves other investors such as Sequoia Capital and Industrial Securities, etc. Zhu Jiangming, founder and chairman of the startup, stated that the capital raised will be used in the R&D of complete vehicles, EV battery, electric motor and electric control and the marketing promotion. Besides, it will cooperate with Shanghai Electric on resource sharing and utilization of manufacturing and electric-drive powertrain.

Aside from the existing investor Sequoia Capital, the other investors all plow money into China's vehicle startups for the first time. According to previous reports, the first batch of body in white of the LP-S01 officially rolled off the production line at the end of October. What's more, the startup's vehicle plant in Jinhua, Zhejiang Province will be completed in the first quarter next year with a total capacity of 250,000 vehicles on an annual basis.

Earlier this month, the automaker saw its first experience center for direct sale open in Hangzhou and aims to spread the center into 8 cities in China, including Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin and Ningbo, etc. The company is ambitious to sell 10,000 LP-S01s next year which will hit the market on January 3, 2019, said Zhu Jiangming.