Xpeng raises additional US$400 million

Xpeng Motors, an electric car startup based in Guangzhou, announced on Wednesday the completion of Series C capital fundraising of US$400 million from investors including Chinese smartphone-maker Xiaomi.

With the funding, Xpeng Motors aims to further develop its models and gain market share in China's new-energy vehicle market.

He Xiaopeng, chairman and chief executive officer of Xpeng Motors, said that "the Series C capital funding introduced new strategic investors such as Xiaomi and also got support from our existing shareholders."

Lei Jun, Xiaomi chairman and chief executive, said that Xiaomi and Xpeng Motors have conducted in-depth cooperation and achieved results with technologies linking smartphones and smart cars. Through the strategic investment, the two hope to further deepen collaboration in the area of intelligent hardware and Internet of Things.

In March this year, Xpeng started mass deliveries of its electric sport-utility vehicle model, the G3. In April, it also unveiled a four-door electric sedan called the P7. The company plans to launch the P7 in 2020.