Sequoia-backed Chinese EV maker Leapmotor raises USD 51.2 million to speed mass production

New funds are a life-or-death matter for China’s EV makers.

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Leapmotor, a Chinese electric vehicle maker headquartered in Hangzhou, capital of Zhejiang province, will gain RMB 360 million (USD 51.2 million) in its Series A-2 round equity financing, according to a filing from its largest corporate shareholder Dahua Technology to the Shenzhen Stock Exchange.

Jinhua Zhongche Fund is the sole investor for this round, while Dahua, which produces surveillance cameras, has decided to back from this round. Dahua’s stake will be reduced from 16.32% to 15.5% while Fu Liquan, the chairman of Duhua, will hold 15.7%, making him the largest stakeholder of Leapmotor, the filing shows.

After the Series A-2 round, Sequoia Capital China, via its entity in Ningbo, Zhejiang province, now owns a 0.7% stake in Leapmotor with a RMB 4.07 million investment, the filing shows.

Leapmotor, which was established in December 2015, delivered its first S01 EV cars to its early customers in June this year, without revealing how many vehicles had been delivered, according to its website.

The EV maker indicates on its website that it plans to ship more of such cars, which are priced between RMB 119,900 (USD 17,033) and RMB 159,900, by the end of this year. The S01 model is priced toward the lower-to-middle-end market in China.