- If the funding goes ahead, it could help propel Momenta toward an eventual IPO.
- Momenta's two domestic peers, Pony.ai and WeRide, have market valuations of $7.6 billion and $3.1 billion, respectively.
Chinese autonomous driving startup Momenta is seeking a new round of funding at a valuation well above $5 billion, Bloomberg reported today.
The company is currently working with advisors to gauge interest from potential investors, the report cited people familiar with the matter as saying.
The people indicated the initial target is several hundred million dollars, but the final amount could increase depending on the specific process.
If the funding goes ahead, it could help propel Momenta toward an eventual initial public offering (IPO), the report said.
Momenta confidentially filed for a US IPO last year, but the progress of the deal depends on market conditions, the report noted.
Separately, according to a Reuters report today, Momenta is considering shifting its IPO from New York to Hong Kong.
Two people familiar with the matter said the company recently informed some investors of its potential plans to list in Hong Kong in 2026, Reuters said.
The company is nearing completion of its pre-IPO financing round, which is expected to involve investors including Mercedes-Benz and Hyundai, the report said.
In the autonomous driving sector, two prominent Chinese companies are currently listed in the US -- Pony.ai (NASDAQ: PONY) and WeRide (NASDAQ: WRD) -- with market capitalizations of $7.6 billion and $3.1 billion, respectively.
While Pony.ai and WeRide primarily target the robotaxi market, Momenta focuses on providing smart driving solutions to automakers.
Founded in 2016, Momenta was initially headquartered in Beijing. In March 2019, it relocated its headquarters to Suzhou, a neighboring city of Shanghai.
Its operations span China and multiple international markets including Germany, Japan, and the US, and has secured strategic investments from SAIC Motor Corp (SHA: 600104), General Motors, Mercedes-Benz, Toyota, and Bosch, according to its website.
Yesterday, German luxury automaker Mercedes-Benz partnered with Momenta to develop driver assistance systems for the Chinese market, becoming the latest automaker after BMW and Audi to leverage the Chinese startup's technology.
The jointly developed smart driving assistance system will debut this fall in the domestically produced all-electric CLA model, offering driving assistance on highways, urban roads, and parking lots.
