SAIC Motor’s mobility service platform Xiangdao Chuxing launches fund to raise 500 million yuan

Shanghai (Gasgoo)- Xiangdao Chuxing, the mobility service brand of SAIC Motor, announced on August 4 the launch a special asset-backed project dubbed “Xiaodao No.1”, which is intended for raising 500 million yuan ($77.346 million).

Photo credit: Xiangdao Chuxing

At the same time, the mobility service provider said the shares of “Xiangdao No.1” have been oversubscribed by such well-known capital institutes as Industrial and Commercial Bank of China and China CITIC Bank with the multiples of preferred subscription amounting to 3.05.

The proceeds from the financing will be used to expand the market size of enterprise-dedicated mobility service business, upgrade industrial researches, and launch projects for business innovations, said Xiaodao Chuxing.

On December 18, 2018, SAIC Motor formally launched Xiangdao Chuxing to explore the online car-hailing market as a strategic move in pursuing the auto-sharing trend and advancing its innovation and transformation. At the end of 2020, it closed a Series A round with over 300 million yuan ($46.41 million) raised from Alibaba Group and CATL. In June of this year, Xiangdao Chuxing began the strategic cooperation with Alibaba.

The mobility service provider said it has begun the process of its Series B funding round and plans to go public in China within the next three years, aiming to become the first publicly-listed carmaker-backed mobility service platform in the country.