The funds will be used primarily for the development of its smart cockpit and smart driving technologies, and the construction of the sales and service systems.
(Image credit: Neta)
Neta Automobile, a Chinese electric vehicle startup, today announced that it has received an RMB 2 billion ($310 million) credit line from the Bank of Shanghai.
The funds will be used mainly for the development and application of smart cockpit and smart driving technologies, the manufacturing of cars and the construction of sales and service systems, the company said in a statement posted on its WeChat account.
Neta signed a strategic cooperation agreement with the bank on December 9 to develop a full range of cooperation in supply chain financing, green finance, retail finance and investment banking, according to the statement.
Neta is the electric vehicle brand of Hozon Auto, which was founded in October 2014. The first Neta model was launched in November 2018.
Neta currently offers three models in China, the Neta V, Neta V Pro and Neta U Pro, all starting at under RMB 100,000 ($15,700).
Neta delivered 10,013 vehicles in November, surpassing the 10,000-unit threshold for the first time, which is up 372 percent year-on-year and 24 percent from October, according to data it announced earlier this month.
Total deliveries to date for all Neta models stand at 85,850 units, the company said.
In late October, Neta announced the completion of an RMB 4 billion Series D1 financing round, with Qihoo 360 leading the RMB 2 billion investment.
Qihoo 360 participated in two consecutive rounds of financing for Neta, with a cumulative investment of RMB 2.9 billion, Neta said at the time.
On November 10, Neta announced that it signed a strategic cooperation framework agreement with Thailand's PTT Public Company Limited to jointly develop the local market.
On November 18, Sina reported that Hozon was in the process of raising a new round of financing of at least $800 million and up to $1 billion, citing sources familiar with the matter.
The financing comes on the heels of a RMB 4 billion D1 round led by Qihoo 360, China's largest cybersecurity company, and a Pre IPO round for Hozon ahead of its IPO in Hong Kong, according to the report.