Geely Holding group announced that its all-electric brand ZEEKR has welcomed a $750 million Series A funding round led by major companies like battery giant CATL. Upon completion of the five member investment, ZEEKR will be valued at $13 billion as it looks to expand to new markets in Europe and a possible IPO in the US.
Having only been founded in 2021, ZEEKR Intelligent Technology remains a young luxury EV automotive brand in China existing under a booming Geely Holding umbrella. China’s largest private-owned automotive group reported 5% sales growth in 2022, led by marques like Volvo Cars, Polestar, and of course ZEEKR.
The young EV-centric brand looks to contribute even more to Geely in 2023. As we previously reported, ZEEKR CEO Andy An’s five key tasks to be completed by the company this year. One task includes the launch of two new EV models – one of which we recently learned will be called the ZEEKR X.
Another task will be for the brand to successfully enter new markets in Europe. As the ZEEKR brand prepares to expand sales beyond China, it has also been quietly filing for a potential IPO in the US. Following today’s latest round of funding, ZEEKR’s valuation sits at an all-time high at an opportune time for market growth.
ZEEKR’s Series A to fund EU expansion; is US IPO next?
Geely Holding announced the $750 million Series A funding for ZEEKR earlier today, which was raised among five separate investors: Prof. Amnon Shashua (founder and CEO of Mobileye), Yuexiu Industrial Fund, Tongshang Fund, Xin’an Intelligent Manufacturing Fund, and Contemporary Amperex Technology Ltd, better known as CATL.
CATL already has an existing relationship with Geely and ZEEKR, whose energy-dense Qilin cell-to-pack (CTP) batteries debuted on the ZEEKR 009 MPV, which began first deliveries last month.
When completed, the latest investment in ZEEKR will push its valuation to $13 billion, which should come as welcomed news for Geely as it was previously hoping for a $10 billion valuation in December when ZEEKR confidentially filed for a US IPO. Geely CEO Daniel Donghui Li spoke to the funding and latest valuation:
The Series-A fundraising is a vote of confidence in the growth prospects and strong future of ZEEKR, which becomes the latest brand in the Geely Holding portfolio to secure a strong valuation. Geely Holding will continue to explore ways to unlock value across our portfolio as we pioneer new services and mobility solutions to meet customer demand across the world.
One certain way Geely and ZEEKR look to unlock value is to begin sales in Europe this year. Which specific EVs will be sold has yet to be announced, but the automaker has been tasked with delivering at least 140,000 vehicles this year – double its 2022 output. Another way to expand its global presence would be to eventually enter the US as well, hence why a ZEEKR IPO could make sense.
However, that is still unconfirmed as we await the status of the automaker’s confidential filing. For now, ZEEKR is riding its highest valuation a mere two years after coming into existence and hopes to carry that momentum overseas and into Europe.
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