Chinese electric vehicle startup Li Auto is about to close a $550 million financing round led by Meituan Dianping, as the local services giant is looking to gain a firmer foothold in the developing electrified vehicle market in the region.
Why it matters: The second investment in Li Auto, also known as Lixiang, underlines Meituan ‘s trust in the hybrid plug-in vehicle manufacturer (PHEV).
Details: Meituan is working on an investment deal of about $500 million in Li Auto, the majority of the $550 million that the automaker is trying to raise for his Series D, according to a Chinese business news outlet LatePost last week article citing people with knowledge of the matter.
According to the study the offer will value the company at $4.05 billion.
Li Auto founder and CEO Li Xiang is going to spend $30 million, while other prior investors have not followed up on this.
Meituan and Li Auto refrained from commenting. Nevertheless, Meituan’s founder and CEO, Wang Xing, “liked” a post about the deal on Chinese micro-blogging site Weibo with his checking account.
The potential investment comes just one year after Wang Xing first invested $300 million as part of the $530 million Series C EV project for a 10 per cent stake.
Earlier this year, the Chinese billionaire said that Li Car, Nio and Xpeng will be the only three young EV builders standing out from the crowd.
Investors including Tiktok shareholder Bytedance and venture capital companies Matrix Partners China and BlueRun Ventures have raised over $2 billion from the five-year-old automaker.