Li Auto's Chip Unit Raises 1.625 Billion Yuan in First Funding Round
Li Auto subsidiary Shanghai Mahe Xin Technology (MHX Technology) closed its first funding round worth 1.625 billion yuan, with Li Auto contributing 1 billion yuan and external investors providing 625 million yuan.
Shanghai Mahe Xin Technology Co Ltd (MHX Technology), the chip and domain controller unit of Chinese company Li Auto, has completed its first equity funding round worth 1.625 billion yuan, equivalent to approximately $242.9 million, according to CnEVPost.
Li Auto is contributing 1 billion yuan, while external investors are injecting 625 million yuan. The external tranche was co-led by Hangzhou Jingtao, Lanchi Ventures, and Huaye Tiancheng, with participation from MiraclePlus.
Additional options worth 500 million yuan could raise the round's total to 2.125 billion yuan, implying a post-money valuation of around 17.1 billion yuan, or about $2.5 billion, if fully exercised.
The financing reflects the effort of Chinese automakers to develop in-house chips instead of relying on external suppliers, at a time when competition over autonomous driving systems is accelerating.
What Do These Terms Mean?
Funding Round: A new investment in a non-publicly traded company, made by investors in exchange for an equity stake.
Domain Controller: A chip that integrates driving and control systems in the vehicle, such as driver assistance and power management.
Post-Money Valuation: The company's value calculated after adding the new funds to its capital.
Option: An agreed-upon right to inject an additional amount later under specified conditions, without obligating the party to do so now.
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