Neta Auto, the Chinese new energy vehicle (NEV) subsidiary of Hozon Auto, has successfully concluded its latest round of funding. The company confirmed that it raised a significant amount of RMB 7 billion (approximately $960 million) through a Crossover funding round. While specific details about the investors and terms of the funding were not disclosed, this funding marks a notable development for the company's financial prospects.
The Crossover funding round stands apart from the more conventional Series A, B, and C rounds. It often serves as a prelude to a potential public offering and involves investment from individuals and entities with experience in publicly traded companies.
Established in October 2014, Neta Auto received approval from the National Development and Reform Commission (NDRC) in April 2017 to produce automobiles. The company gained attention in November 2018 with the launch of its inaugural model, the N01.
Neta Auto's funding journey began with an angel round of RMB 2 billion in September 2017, followed by a Series A financing of RMB 1.25 billion in December of the same year. Subsequently, the company secured several rounds of financing ranging from Series B to Series D between April 2019 and July 2022.
Reports emerged in November 2021 suggesting Neta Auto's consideration of a funding round of up to $1 billion as a precursor to its potential Initial Public Offering (IPO) on the Hong Kong stock exchange. While anticipated for 2022, the company has not provided specific details about its IPO plans.
Despite its financial activities, Neta Auto has maintained its operational momentum. In July, the company reported delivering 10,039 vehicles, marking a 28.48 percent decrease compared to the same period in the previous year. This figure also reflected a 17.25 percent decline from June, possibly influenced by the company's ongoing model transition. For the January-July period, Neta Auto delivered a total of 72,456 vehicles, representing a 6.11 percent year-on-year decrease.
The recent successful funding round underscores Neta Auto's commitment to navigating the competitive landscape of the electric vehicle sector, while further bolstering its growth initiatives.