Avatr closed over RMB 11 billion ($1.5 billion) in series C funding, with a goal of going public in 2026.
Avatr Technology has closed a new round of funding and is targeting to go public within 2 years.
The electric vehicle (EV) company, which is backed by Changan Automobile, CATL, and Huawei, announced yesterday that it has closed its series C financing round, raising more than RMB 11 billion ($1.5 billion).
Investors in the financing included Avatr's parent company Changan, other existing investors, and new investors.
With the completion of the series C financing, Avatr will have more adequate working capital to support efforts including accelerating the development of subsequent models, brand building, and overseas expansion, it said.
Avatr president Chen Zhuo announced on Weibo yesterday that the EV maker has initiated preparations for going public, targeting an initial public offering (IPO) in 2026.
Separately, according to Changan's announcement yesterday, it will increase capital to Avatr by RMB 4.551 billion, other existing shareholders by RMB 3.9 billion, and other new shareholders plan to increase capital in the EV maker by a total of RMB 2.65 billion.
After the completion of the capital increase, Changan's stake in Avatr will remain unchanged at 40.99 percent and CATL's stake will be reduced from 14.1 percent to 9.17 percent.
Avatr was originally founded as Changan Nio by Changan and Nio (NYSE: NIO) on July 10, 2018, when each held a 50 percent stake.
On June 4, 2020, Changan increased capital in Avatr by RMB 90 million, increasing its shareholding to 95.38 percent, while Nio's shareholding was reduced to 4.62 percent.
In May 2021, Changan Nio changed its name to Avatr, removing Nio from its name. Nio is no longer on Avatr's shareholder list.
Like other local EV makers, Avatr is also in the red.
From 2022 to the first half of 2024, Avatr has accumulated a net loss of RMB 7.1 billion, according to Changan.
Changan's goal is to see Avatr break even by the third or fourth quarter of 2025, Chen previously mentioned.
Avatr signed a deal with Huawei in August to buy a 10 percent stake in the latter's automotive unit Newcool for RMB 11.5 billion, making it the second-largest shareholder. Newcool was valued at RMB 115 billion in the deal.
On December 12, Avatr signed a new agreement with Huawei for deep cooperation in areas including product development, marketing and eco-services.
($1 = RMB 7.2847)
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