Changan Automobile’s upscale electric vehicle (EV) subsidiary, Avatr Technology, has successfully concluded a new funding round, bolstering its financial arsenal for forthcoming expansion initiatives.
In an official announcement made via Weibo, Avatr revealed the closure of a substantial RMB 3 billion ($410 million) Series B funding round. This latest influx of capital elevates the company’s post-investment valuation to an impressive RMB 20 billion.
Avatr Technology’s strategic objectives include enhancing customer experiences and positioning itself as a premier international brand within the high-end smart EV segment.
The funding round saw participation from both incumbent investors, Changan and South Industry Assets Management, reaffirming their confidence in Avatr’s growth trajectory. Additionally, the company welcomed fresh investment from new shareholders, including BOCOM International Equity Investment Management.
Founded under the name Changan Nio on July 10, 2018, as a collaboration between Changan and Nio (NYSE: NIO), Avatr’s evolution has led to a change in ownership structure, with Nio’s stake now resting at below 1 percent.
Changan undertook a rebranding exercise in August 2021, renaming Changan Nio as Avatr. The EV subsidiary operates under Changan’s stewardship, with contributions from Huawei and CATL in the domains of smart vehicle solutions and battery technology.
Emerging from a journey marked by developmental challenges, Avatr successfully introduced its inaugural model, the Avatr 11 SUV, to the market on August 9, 2022. Deliveries of this model commenced at the close of the preceding year, in December.
Supplementing its lineup, Avatr also unveiled a limited-edition offering, the Avatr 011. Deliveries of this model kicked off in February of the current year.
Despite these achievements, Avatr’s sales performance has displayed some vulnerabilities. The China Passenger Car Association (CPCA) reported sales of approximately 1,200 units in July, with figures for the past three months consistently remaining below the 2,000-unit mark.
See also: Avatr 11 launches in China with a range up to 422 miles and starts from $51,800
While Avatr’s Weibo post provided limited insights into the specifics of the recent funding round, supplementary information was disclosed through a Changan stock exchange announcement.
Following the recent round of funding, Changan maintains an unchanged stake of 40.99 percent in Avatr. Meanwhile, CATL, holding the second-largest shareholder position, witnessed a reduction in its stake from 17.10 percent to 14.10 percent.
