WM Motor Secures Biggest Funding in the Past Year among New Energy Car Makers
Author: Yang Haiyan
Introduction: WM Motor is facing fierce competition on the racetrack. Whether it can realize its self-worth and establish its own brand competitive advantage through external capital injection, and achieve further leaps, is extremely important for WM Motor.
Sales have slipped from the number one spot among new forces to the fifth or sixth position, and the listing has yet to make a breakthrough. This year, WM Motor has been “left behind” and lurking in the shadows. However, with the launch of new cars such as W6 and E5, WM Motor’s sales in September hit a new high. Although it has been surpassed by new forces such as WeRide, WM Motor has not given up its pace of catching up. Moreover, WM Motor has just announced that it has secured CNY 3.2 billion in new financing, which means that the capital market still has great expectations for WM Motor.
WM Motor Secures the Biggest Funding among New Energy Automakers in the Past Year
On October 5th, WM Motor announced that it expects to receive about USD 500 million (equivalent to CNY 3.2 billion) in funding. The D1 round of financing will be led by PCCW and SDIC, with USD-denominated investment institutions under GF-SDIC participating, raising over USD 300 million. Afterward, WM Motor will sign a D2 round of financing agreement with other international and well-known USD-denominated investment institutions. Jinyun Capital and Light Source Capital participated in this round of financing as financial advisors. It is worth noting that WM Motor has received the largest investment among new automakers in the past year.
Since its inception, WM Motor has gone through 11 rounds of financing. They are A round financing in August 2016, with Yuema Capital investing a total of USD 1 billion; B round financing in December 2017, with investment from Baidu Capital and Baidu Group, raising a total of USD 1 billion; C round financing in March 2019, with investment from Baidu Capital, Sequoia, and Jupai, raising a total of CNY 3 billion; and D round financing in September 2020, with investment from Shanghai State-Owned Assets Investment, SAIC, Baidu, and Haina Asia, raising a total of CNY 10 billion.
As we all know, in the new energy vehicle market, new automakers all want to develop, and capital is a crucial factor. Since its founding, WM Motor has raised more than CNY 30 billion from the first round of financing to the present. Li Bin, founder of NIO, once said, “Don’t even think about making cars without CNY 20 billion,” and such a fierce statement is still being talked about among new automakers. It is well known that building a brand new electrification brand from scratch requires astronomical investment in technology and marketing, and external investment is as important as vital. Currently, “comprehensive competition” in the new energy vehicle race is already underway.# WM Motor: Moving Forward Steadily
WM Motor was founded in 2015 and quickly established its own factories and research centers. While many other new players were still in the PPT stage, WM Motor had already taken a leading position. However, since last year, WM Motor has been surpassed by NIO, XPeng, and Ideal, and has fallen behind in the competition. Although it has been difficult for WM Motor to maintain its top-three position in the new energy vehicle market, it has recently obtained a new round of financing. One might wonder what investors see in WM Motor.
According to official information, WM Motor will focus on autonomous driving and accelerate the development of intelligent technology and products, sales and service channels, and expand the Chinese new energy vehicle market, especially in the smart electric vehicle segment, providing customers with differentiated products and travel experiences. WM Motor founder and CEO Shen Hui said that “this investment represents the largest private equity investment in Chinese local new energy vehicle companies by international capital markets in the past 12 months.” It not only has great market significance, but also provides critical support for WM Motor’s continued research and development of autonomous driving technology, further establishing its advantages in intelligent technology and industrial layout.
WM Motor also stated that it will focus on bringing advanced technology to mainstream markets with intelligent electric vehicles. WM Motor’s products are equipped with advanced intelligent cabins and world-leading three-electric systems, providing superior autonomous driving experiences. In April of this year, WM Motor’s W6 became the first and only vehicle with L4 level autonomous parking function in the industry. In mid-October, WM Motor will release its latest sedan, showcasing its latest research and development achievements. From advanced technology research and development to superior driving experiences, WM Motor’s strength is not to be underestimated.
Steady Sales Growth
As we all know, WM Motor’s sales have reached their peak since the beginning. Just like a child praised for good grades, it has had its ups and downs. The opening was a peak, giving WM Motor enough time to grow. Recently, WM Motor finally released its September 2021 sales figures, exceeding 5,000 units. This is almost certainly the best monthly sales record WM Motor has ever had. The September sales data of WM Motor is of great historical significance. This is the first time that WM Motor has not relied solely on the EX5 model to achieve its sales goals but has shared the burden with the W6 and the recently launched E5.According to the official sales data released by the China Association of Automobile Manufacturers, in July of this year, the top three mainstream electric vehicle brands in terms of sales were Aiways, Ideal, and XPeng, while WmAuto ranked eighth. Among the new forces, WmAuto also hovered in the top five, with only half the sales of companies like Li Auto. As mentioned earlier, WmAuto has been left behind by the second-tier new forces such as NIO and Leading Ideal, and its growth rate is also lower than these competitors. However, in September, WmAuto’s sales showed a significant increase.
If WmAuto continues to lag behind and its sales remain stagnant, it is likely that it will fall out of favor in the capital market. However, in terms of financing amount, WmAuto was still a favorite of the capital market until October of last year. As for why they fell behind, founder Shen Hui recently personally clarified that WmAuto’s goal was still the Sci-Tech Innovation Board, but the “quiet period is a bit long”. For the weak sales, Shen Hui attributed it to chip shortages.
Although WmAuto’s sales compared to first-tier new forces such as NIO, XPeng, and Ideal do have a gap, overall, WmAuto’s gap with these three new forces is the smallest. In the industry’s view, on the one hand, becoming the first new energy vehicle stock on the Sci-Tech Innovation Board can increase attention and valuation from the capital market, which is of significant importance for enterprise development. On the other hand, it is also extremely important for WmAuto, which closely follows the first-tier new forces. With the new financing in place, WmAuto may go public in Hong Kong following XPeng.
In fact, according to the summary report of the guidance work of CITIC Construction on WmAuto Auto, WmAuto Auto has successfully applied to the China Securities Regulatory Commission for submitting its first public offering of shares and preparing for listing and is planning to land on the Sci-Tech Innovation Board. From the founding of WmAuto by Shen Hui, it is not difficult to see that WmAuto Auto was destined to take a different path from Li Auto. As a senior manager who has been deeply involved in the traditional automobile industry for many years, Shen Hui’s accumulation of knowledge and experience will give WmAuto a strong traditional gene.
The first-tier new forces of new energy vehicle manufacturers can be said to be soaring, and the second-tier forces are also strong competitors. There are also swarms of traditional manufacturers and internet giants coming from behind. For WmAuto, facing a fiercely competitive race track, whether it can achieve self-value realization and establish its own brand competitive advantage through external capital injection, and achieve further leaps, is of great significance and importance.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.