China’s HOZON Auto reportedly closes 2 billion yuan new funding round

Shanghai (Gasgoo)- HOZON Auto, the startup owning the NEV brand NETA, recently secured over 2 billion yuan ($316.22 million) in a new funding round, according to a local media outlet.

NETA U Pro; photo credit: HOZON Auto

This is the third round of HOZON Auto's series D financing. Main investors of the latest round include the CRRC-owned fund and Shenzhen Capital Group Co., Ltd., according to the report.

In October 2021, HOZON Auto announced it had closed the D1 financing round with 4 billion yuan ($632.441 million) raised in total, 2 billion yuan ($316.22 million) of which were contributed by the Chinese Internet safety giant 360 Security. Then in December last year, HOZON Auto revealed the completion of the D2 funding round, which was backed by CATL, 360 Security, BAIC Capital, and other investors.

The completion of the entire D round would value HOZON Auto at over 25 billion yuan ($3.953 billion), said the media channel.

HOZON Auto is seeking to raise about $500 million before a potential listing in Hong Kong this year, Bloomberg reported in late January, citing people with knowledge of the matter. The rumored round would value the startup at around 45 billion yuan ($7.115 billion).

The company could seek to launch its initial public offering as soon as the second half of 2022, the aforesaid people revealed.

After being reached for a comment, HOZON Auto said the IPO issue should be in accordance with the company's announcement.