Avatr Closes Series A Financing, Valuation Hits $1.48B
Avatr Technology, a new energy vehicle company jointly built by Changan Automobile, Huawei and CATL, announced that it had completed round A financing, driving its total financing scale to nearly 5 billion yuan ($740 million), and the market valuation to nearly 10 billion yuan ($1.48 billion).
This round of financing was led by the National Green Development Fund and followed by many institutions such as China Merchants Jintai Capital, Guotou Jvli, Inno Chip, and CITIC New Future Investment. Avatr will sign long-term strategic cooperation agreements with a number of new investors on sales network support, chip supply guarantees, visual image perception, and intelligent console development.
Changan Automobile and South Industry Assets Management, the existing shareholders of Avatr, also made additional investments. Changan Automobile, South Industry Assets Management, and National Green Development Fund plan to increase capital by 1.169 billion yuan, 100 million yuan, and 480 million yuan respectively. After this round of investment, the three parties’ shares in Avatr are 40.99%, 7.35%, and 5.41% respectively.
Avatr’s second-largest shareholder, power battery giant CATL, did not participate in the financing and thus saw its shareholding diluted from 23.99% to 17.1%. Changan Automobile is still Avatr’s largest shareholder with 40.99% of shares.
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The financing will accelerate Avatr’s future product development and design and brand development. According to the plan, Avatr 11, its first model, and Avatr 011, a limited edition, will be officially launched on August 8, and delivery will start later this year. At the same time, its second model is progressing in an orderly manner. With the completion of round A financing, it is expected that the process of vehicle manufacturing will be further accelerated.