Tongyu Automotive has secured 500 million yuan ($70.6 million) in a Series B funding round roping in a slew of automaker-affiliated investors.
BAIC Capital, the investment arm of Chinese automaker BAIC, and Rockets Capital, a private equity fund backed by Chinese electric vehicle maker Xpeng, backed the funding round. Other automotive-focused investors that participated in the round include Xyuan Capital and Guojiang Fund.
Meanwhile Shenzhen Capital Group, the venture investment vehicle of the Shenzhen government, and global venture capital firm GGV Capital also joined the round.
Smartphone maker Xiaomi, Dongfeng Asset Management, the investment arm of Chinese state-owned auto giant Dongfeng Motor Group, and BOCOM International, a financial services subsidiary of China’s Bank of Communications, are among some of the existing backers who re-upped in the funding round, according to a company release on Monday.
The Shanghai-registered firm will use the proceeds to finance the research and development of its chassis products, expand the team, and set up its Shanghai headquarters, per the release.
Founded in 2016, the firm previously sealed its Series A+ round in August 2022 led by Xiaomi and a fund jointly set up by Dongfeng Motor Group and BOCOM International.
China’s automobile and parts companies have raised nearly $3.5 billion in Q3, making it the most-invested sector by investment proceeds, despite only 39 deals being sealed during the period, according to DealStreetAsia’s proprietary data.