LeeKr Technology has pocketed 1 billion yuan ($137.8 million) in a Series C funding round to fuel its global expansion, according to a company release on Wednesday.
The round roped in a number of state-owned investors including Hangzhou Fuchunwan New City Development Fund, Hefei Construction Investment & Holding, Hefei Baohe Innovation Investment Private Fund Managemen, and automotive manufacturer Chery Holding Group.
Several local investment firms including Sealand Innovation, Huaying Investment, as well as CyberNautea have participated in the round, per the release. The proceeds will help the firm expand its production capacity and global expansion.
Founded in 2020, the Shanghai-based, which engages in developing chassis-by-wire systems for automobile firms, counts Sinovation Ventures, Unity Ventures, Vision Plus Capital, Leaguer Capital, and Harvest Investments among its backers.
Previously, the firm secured 400 million yuan ($58 million) in a Series B round led by CAS Investment and Leaguer Capital in April 2023.
The investment comes as the automobile sector continues to be one of the most sought-after targets for deep-pocketed investors in China, sealing five megadeals collectively worth more than $1.7 billion in Q1. The fundraisers were new energy vehicle developers, suppliers, or solution providers, according to DealStreetAsia’s proprietary data.
Despite the funding frenzy, the industry itself is not without struggles and is witnessing waves of layoffs, cost cuts, and factory shutdowns due to intense market competition. Private investors are, therefore, looking to back other emerging technologies that can help carmakers expand their margins.