Alibaba-backed Xpeng Motors Lands $500M Series C+

Xiaopeng Motors, an electric vehicle maker based in China, said Monday it secured a Series C+ round of financing of approximately $500 million.

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The group of investors participating in the new cash infusion included Aspex, Coatue, Hillhouse Capital and Sequoia Capital China, the company said in a written statement.

The investment comes seven months after receiving a $400 million round of financing. In total, Xiaopeng Motors, known as Xpeng, has raised $2.2 billion, according to Crunchbase data, which does not include yuan raised.

Alibaba Group backed Xpeng in a $314.8 million Series B+ round in 2018.

Xpeng, founded in 2014, said in a statement that the new funding “demonstrates investors’ confidence in the company’s strategy, market positioning and its long-term vision as a leading Smart EV player in China.”

So far this year, the company has launched its second model–the P7 sports sedan–and secured the production license for its self-built fully owned factory in Zhaoqing, Guangdong Province.

Although Xpeng did not disclose its current valuation, Taipei wealth management company Oak Stone Limited reported Monday that it estimates the company’s value at 25 billion yuan ($3.6 billion) since 2018. The company also said Xpeng had been eyeing an initial public offering, but was holding off.

China’s electric vehicle market, which includes more than 400 automobile makers, grew rapidly as a result of government investment and consumer discounts, but is now shrinking amid concern of growing too quickly, according to comments by James Burnley, head of wealth management at Oak Stone, in a written statement.

Illustration: Li-Anne Dias