Avatr Technology finishes A-round of fundraising

Avatr Technology, an emerging electric vehicle maker backed by three leading industry players - Changan Automobile, Huawei and CATL - announced that it has finished A-round of fundraising on Tuesday, despite the cooling and more rational investment on the overall new energy vehicle sector.

Though the number of new financing is undisclosed, the total fundraising of this young brand hit nearly 5 billion yuan ($740 million), increasing the company's market value to nearly 10 billion yuan.

Led by government fund National Green Development Fund Co Ltd, the new round also attracted new investors including a subsidiary fund from China Merchants Capital, the investment arm of the State Development and Investment Corp, as well as Inno-Chip.

"The joint force of local financial funds and well-known industrial capitals not only provides more stable capital support, but also further enriches our industrial chain resources, making our strategic cooperation ecology and capital structure more diverse," said Tan Benhong, chairman and CEO of Avatr.

Industry experts said that the CHN cooperation model created by Avatr is an example of cross-border integration and cohesive development of the automotive and information and communications technology sectors.

CHN model refers to Changan Automobile Group, tech giant Huawei Technologies Co and battery CATL, the three major investors and supporters of this young brand.

The company said that the new round of fundraising will be used to further accelerate the research and development of its future products, market brand development and channel construction. The company shared that the research and development of its second car model is in progress.