Avatr's post-investment valuation reached RMB 20 billion, and Nio's stake in the company dropped from 0.81 percent to 0.67 percent.
(Image credit: CnEVPost)
Changan Automobile's premium electric vehicle (EV) subsidiary Avatr Technology closed a new round of funding, adding ammunition for future expansion.
Avatr has closed an RMB 3 billion ($410 million) Series B funding round, bringing its post-investment valuation to nearly RMB 20 billion, the company announced today on Weibo.
Avatr will next provide a better experience for its customers and will aim to become an internationalized brand of high-end smart EVs, it said.
In addition to new investments from existing shareholders Changan and South Industry Assets Management, Avatr has brought in several new shareholders including BOCOM International Equity Investment Management, it said.
Avatr was initially founded as Changan Nio by Changan and Nio (NYSE: NIO) on July 10, 2018, but Nio's stake in the company is now below 1 percent.
In August 2021, Changan rebranded Changan Nio as Avatr and said the EV unit is led by Changan, with Huawei and CATL responsible for smart car solutions and battery solutions.
After several years of bumpy development, Avatr officially launched its first model, the Avatr 11 SUV, on August 9, 2022, and its deliveries began at the end of December last year.
Apart from the Avatr 11, Avatr also has a limited-edition model, the Avatr 011, whose deliveries started in February this year.
Avatr's sales performance has been weak, selling 1,200 units in July and below 2,000 units for the past three months, according to the China Passenger Car Association (CPCA).
Avatr's Weibo post didn't provide much more on the latest funding, though a stock exchange announcement by Changan last night provided some details.
Changan maintained its 40.99 percent stake unchanged following the latest funding round. CATL's stake fell from 17.10 percent to 14.10 percent, remaining the second largest shareholder.
Nio's stake in Avatr was further diluted to 0.67 percent from 0.81 percent previously.
(Screenshot of Changan's announcement.)
($1 = RMB 7.2873)
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