Ningbo-based Joynext has raised RMB 720 million (USD 106 million) in a financing round led by CMG-SDIC Capital, a private equity fund created by China Merchants Group and State Development & Investment Corp, 36Kr reported on Wednesday. Ningbo Gaofa (SHH: 603788), which develops automotive control systems, FG Venture, Cathay Capital, and the VC Shenzhen Baoteng Dianli joined this round.
The financing comes at a time when the Chinese government has set a goal of unrestricted information flow between people, vehicles, roads, and cloud platforms via the 5G network by 2025, as part of the country’s strategy to develop smart and connected vehicles.
Joynext, which focuses on connected vehicle technologies, is a subsidiary of automotive safety product maker Joyson Electronics (SHH: 600699). The company has been developing so called 5G V2X in-car hardware for autonomous driving vehicles to enable communication between vehicles, passengers, and road infrastructure.
V2X, referring to vehicle-to-everything connections, is designed to add an extra layer of safety to autonomous vehicles. Electric car maker Nio (NYSE: NIO) plans to use Joynext’s 5G V2X technologies as of December 2021.
The company also recently started to mass produce a Linux and Android-based joint operational system for automotive cockpits that are used by automakers such as Volkswagen.