Chinese e-commerce giant Alibaba Group Holding Ltd. and Foxconn Technology Group led a new fundraising round by electric carmaker Xiaopeng Motors, investing 2.2 billion yuan ($350 million) in the startup as a push toward battery-powered vehicles intensifies.
The latest funding puts the total investment in Xiaopeng at 5 billion yuan, according to a statement sent by the carmaker. Other investors also include IDG Capital, the company said.
Xiaopeng is among the startups striving to become China’s Tesla Inc. and upend the existing auto sector. It completed Series-A fundraising round in December, with Alibaba, GGV Capital and Matrix Partners China among the investors. The carmaker plans to start selling its first model, the G3 crossover, this year.
The investment marks Alibaba’s latest move in the automotive industry, as the Internet giant is betting connected cars will generate new revenue. The Hangzhou-based group has developed its own car operating system.
Representatives for Alibaba and Foxconn confirmed the investment.