China electrical automotive startup Nio raises over $1 billion from Tencent, others: sources


FILE PHOTO: People gather at the booth of Chinese electric vehicle start-up Nio as it unveils its ES8 SUV at the Shanghai autoshow, in Shanghai, China April 19, 2017. REUTERS/Aly Song/File Photo
FILE
PHOTO: People collect on the sales space of Chinese electrical automobile
start-up Nio because it unveils its ES8 SUV on the Shanghai autoshow,
in Shanghai

Thomson
Reuters


By Julie Zhu

HONG KONG (Reuters) – Chinese electrical automobile startup Nio has
raised greater than $1 billion in its newest fundraising spherical, led
by current investor Tencent Holdings Ltd, valuing the agency at
about $5 billion, two folks with data of the matter mentioned.

New traders within the spherical embrace U.S. hedge fund Lone Pine
Capital, Chinese funding agency CITIC Capital and Scottish fund
supervisor Baillie Gifford, mentioned one of many folks.

The fundraising comes as Beijing has been selling electrical
automobiles in its battle with city smog, with startups flooding
the market after it opened up the sector to funding from
expertise companies and different backers outdoors the business.

It marks a busy information week for Tencent, Asia’s second-most
useful firm with a market capitalization of round $475
billion.

Snap Inc mentioned on Wednesday that Tencent had taken a 12 p.c
stake within the messaging app. A day earlier, Tencent’s e-book unit
China Literature Ltd noticed its shares surge greater than 80 p.c in
their debut.

Tencent, CITIC Capital and Baillie Gifford did not instantly
reply to requests for touch upon the Nio fundraising. Nio
declined to remark. Lone Pine Capital was not instantly
out there for remark outdoors of regular enterprise hours.

The sources declined to be named because the financing plans weren’t
public.

Shanghai-based Nio, based by Chinese web entrepreneur
William Li in 2014, has already attracted big-name traders,
counting Tencent as its most important backer alongside funding companies
Hillhouse Capital Group and Sequoia Capital.

Nio, previously referred to as NextEV, can also be among the many first of a raft
of Chinese electrical automobile companies to launch a manufacturing automobile,
with many up to now solely exhibiting idea automobiles.

Its first mbad manufacturing automotive – the ES8 pure-electric, seven-seat
sport-utility automobile is about to be launched in mid- December,
in line with the corporate. Chairman Li instructed Reuters in April that
the mannequin would provide extra options than the Tesla Model X at a
cheaper price.

Tencent can also be an investor in U.S. electrical automotive maker Tesla Inc.

Nio has additionally vowed to deliver an autonomous electrical automotive to the
U.S. market by 2020. The agency mentioned in April it was teaming up
with China’s fourth-largest automaker Chongqing Changan
Automobile to kind a three way partnership to cooperate on researching
and promoting electrical automobiles.

It was valued at about 20 billion yuan ($three.02 billion) when it
raised $600 million in March, in line with Chinese media reviews
on the time.

Tencent’s personal information portal, Tencent Technology, first reported
Nio’s newest financing spherical on Wednesday.

(Reporting by Julie Zhu; Editing by Jennifer Hughes and
Muralikumar Anantharaman)


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