Chinese EV startup Xpeng Motors raises $400 million, takes on Xiaomi as strategic investor

Xpeng Motors, the Chinese electric vehicle startup backed by Alibaba and Foxconn, has raised a fresh injection of $400 million in capital and has taken on Xiaomi as a strategic investor, the company announced.

The Series C includes an unidentified group of strategic and institutional investors. XPeng Motors Chairman and CEO He Xiaopeng, who also participated in the Series C, said the received strong support from many of its current shareholders. Xiaomi founder and CEO Lei Jun previously invested in the company.

“Xiaomi Corporation and Xpeng Motors have achieved significant progress through in-depth collaboration in developing technologies connecting smart phones and smart cars,” Xiaomi’s Jun said in a statement. “We believe that this strategic investment will further deepen our partnership with Xpeng in advancing innovation for intelligent hardware and the Internet of Things.”

The company didn’t disclose what its post-money valuation is now. However, a source familiar with the deal said it is “better” than the 25 billion yuan valuation it had in its last round in August 2018.

The announcement confirms an earlier report from Reuters that cited anonymous sources.

XPeng also said it has garnered “several billions” in Chinese yuan of unsecured credit lines from institutions such as China Merchants Bank, China CITIC Bank and HSBC. XPeng didn’t elaborate when asked what “several billions” means.

Brian Gu, Xpeng Motors Vice Chairman and President added that the company has been able to hit most of its business and financing targets despite economic headwinds, uncertainties in the global markets and government policy changes that have had direct impact on overall auto sales in China.

The round comes as XPeng prepares to launch its electric P7 sedan in spring 2020. Deliveries of the P7 are expected to begin in the second quarter of 2020.

Xpeng began deliveries of its first production model the G3 2019 SUV in December and shipped 10,000 models by mid-June. The company has since released an enhanced version of the G3 with a 520 km NEDC driving range.

The company plans to launch the P7 sedan in the spring 2020 and will start delivery in 2Q 2020.

XPeng has said it wants to IPO, but it’s unclear when the company might file to become a public company. No specific IPO timetable has been set and a spokesperson said the company is monitoring market conditions closely, but its current focus is on building core businesses.

Minecraft Earth is live, so get tapping

Microsoft’s big experiment in real-world augmented reality gaming, Minecraft Earth, is live now for players in North America, the U.K. and a number of other areas. The pocket-size AR game lets you collect blocks and critters wherever you go, undertake little adventures with friends and, of course, build sweet castles.

I played an early version of Minecraft Earth earlier this year, and found it entertaining and the AR aspect surprisingly seamless. The gameplay many were first introduced to in Pokémon GO is adapted here in a more creative and collaborative way.

You still walk around your neighborhood, rendered in this case charmingly like a Minecraft world, and tap little icons that pop up around your character. These may be blocks you can use to build, animals you can collect or events like combat encounters that you can do alone or with friends for rewards.

Ultimately all this is in service of building stuff, which you do on “build plates” of various sizes. These you place in AR mode on a flat surface, which they lock onto, letting you move around freely to edit and play with them. This sounded like it could be fussy or buggy when I first heard about it, but actually doing it was smooth and easy. It’s easy to “zoom in” to edit a structure by just moving your phone closer, and multiple people can play with the same blocks and plate at the same time.

Once you’ve put together something fun, you can take it to an outdoor location and have it represented at essentially “real” size, so you can walk around the interior of your castle or dungeon. Of course, you can’t climb steps, because they’re not real, but the other aspects work as expected: you can manipulate doors and other items, breed cave chickens and generally enjoy yourself.

The game is definitely more open-ended than the collection-focused Pokémon GO and Harry Potter: Wizards Unite. Whether that proves to be to its benefit or detriment when it comes to appeal and lasting power remains to be seen — but one thing is for sure: People love Minecraft and they’re going to want to at least try this out.

And now they can, if they’re in one of the following countries — with others coming throughout the holiday season:

  • United States
  • United Kingdom
  • Canada
  • South Korea
  • Philippines
  • Sweden
  • Mexico
  • Australia
  • New Zealand
  • Iceland

You can download Minecraft Earth for iOS here and for Android here.