Self-driving Chinese startup Zongmu raises US$157m in new funds

[BEIJING] Zongmu Technology Shanghai has raised more than 1 billion yuan (S$213 million) in a new round as the Chinese autonomous driving system startup looks to build a new production plant.

State-backed funds Dongyang State-Owned Assets Investment and Zhejiang Caitong Capital Investment led Zongmu's series E funding round, according to a statement on Monday (Mar 28). Sunic Capital, Zuoyu Capital and a fund backed by Cosco Shipping Development and China Cinda Asset Management also participated.

Zongmu plans to use the proceeds to accelerate research and development. It's also going to spend the capital on setting up a base in Zhejiang province that can produce 2 million sets of autonomous driving systems a year.

Founded in 2013, the Shanghai-based company focuses on autonomous driving and advanced driving assistant system technologies and products, according to its website. It also provides automated valet parking systems to carmakers.

Zongmu, which means "looking afar" in Chinese, has research and development centres in Beijing, Shanghai and Xiamen as well as Stuttgart, Germany. Its manufacturing centre is in Xiamen.

The startup is considering a listing on the Nasdaq-like Star board in Shanghai, Bloomberg News reported last June. The firm counts Xiaomi-backed investment fund Hubei Xiaomi Changjiang Industrial Investment Fund Management, Japan's Denso, Qualcomm Ventures and Fosun Capital Group as existing backers. BLOOMBERG