Xiaomi has invested in auto electronics maker Atech Automotive, in the Chinese smartphone maker’s latest bet on the country’s auto industry after venturing into electric vehicle (EV) production last year.
Atech Automotive, a nearly-two-decade-old Chinese manufacturer of auto electronics used in intelligent and autonomous driving vehicles, announced on Tuesday the completion of its Series C round at over 500 million yuan ($68.9 million) with the support of investors including Xiaomi’s industry investment arm.
As one of the lead investors, Xiaomi backed the deal alongside CICC Capital, the private equity (PE) platform of China International Capital Corporation Limited (CICC); Chinese listed insurer PICC Group’s subsidiary PICC Capital; and Beijing-based China Fortune-Innovation Capital. A state capital investor in eastern China’s Anhui Province was also on the list of lead investors.
Atech’s existing shareholders, October Capital and Cowin Capital, doubled down on the new round, in addition to commitments from a range of participating investors such as Winsoul Capital, who served as the exclusive financial adviser to the deal.
Founded in 2003, Atech supplies auto electronics, such as advanced driver assistance systems (ADASs) and smart cockpit solutions, to domestic and international carmakers. Its clients include Chinese emerging EV brands such as Li Auto and XPeng as well as more traditional car manufacturers such as Geely Auto, Great Wall Motor, and BAIC Motor. Its products are available across overseas markets, including South Korea, Germany, Vietnam, Japan, and the US.
The deal marks Xiaomi’s latest investment in the auto sector after its co-founder, Lei Jun, announced in March 2021 a plan to invest $10 billion in developing EVs over the course of 10 years.
Xiaomi “will continue investments in the smart EV industry”, the firm said in a statement. It added that Xiaomi aims to help enterprises across the smart EV ecosystem achieve rapid growth.
Xiaomi has invested in German auto supplier Bosch-backed Atech through Hubei Xiaomi Yangtze Industrial Fund, which it had established in 2017 to focus on new technologies, new applications, and smart manufacturing solutions in the fields of smartphone and intelligent hardware supply chain. Its initial fund reached a size of 12 billion yuan ($1.7 billion).
The new financing follows the completion of Atech’s Series B round at an undisclosed sum in July. An auto industry fund jointly set up by China’s Dongfeng Asset Management and Hong Kong-based financial services firm BOCOM International invested in the previous deal.