Avatr Technology Secures Over 11 Billion Yuan in Series C Funding, Plans 2026 IPO

Chongqing—Avatr Technology, a new energy vehicle (NEV) company based in Chongqing Liangjiang New Area, recently announced the successful completion of its Series C funding round, which raised over 11 billion yuan (around USD 1.51 billion). The company also revealed plans to launch an Initial Public Offering (IPO) in 2026.

According to reports, an Avatr spokesperson stated that this funding round could become the largest financing deal in China's NEV industry by 2024. 

The Investor Relations Activity Records of Changan Auto (Records), released on December 19, revealed that in the funding round, Changan Auto increased its investment by 4.551 billion yuan, while other investors collectively increased their investments by 6.55 billion yuan, bringing the total amount to 11.101 billion yuan.

Avatr Technology's Headquarters in Chongqing's Liangjiang New Area. (Photo/Avatr)

Upon completion of the financing, Changan Auto will remain the largest shareholder, with a stake of 40.99%. As the financing accelerates, Avatr's valuation has surged. Reports indicate that it will increase from 14.085 billion yuan during the capital increase in September last year to over 30 billion yuan.

On December 17, Changan Auto released The August 2024 Avatr Technology Audit Report, revealing that Avatr had a total revenue of 7.386 billion and a net loss of 2.121 billion yuan during the first eight months of 2024. Chen Zhuo, President of Avatr, previously stated that Changan Auto has set a target for Avatr to achieve breakeven in Q3 or Q4 of 2025.

Securities Daily stated that Avatr must "achieve breakeven before the IPO," highlighting that increasing sales is crucial for reducing its losses. According to data, Avatr demonstrated strong market growth in October and November, with sales reaching 10,056 units in October and 11,579 units in November.

Meanwhile, according to Avatr's announcement, the successful completion of the funding round has provided Avatr with ample capital, enabling Avatr to further accelerate the research and development of new models and overseas expansion.

Another record on December 6 revealed that Avatr will continue to expand its overseas market. Avatr has simultaneously initiated market expansion in ASEAN, the Middle East, Africa, and Latin America, signing agreements with 55 channel partners covering 25 countries and regions.

In terms of new product development, reports indicate that Avatr plans to develop two SUV and MPV models, codenamed F618 and D706, based on the SDA 2.0 platform rather than the CHN platform, to serve as the next generation of brand flagships by 2026.

The SDA platform is Changan Auto's specific solution for implementing the "Software-Defined Vehicle" concept. It encompasses the entire automotive development and production process, from mechanical manufacturing to software control.

Avatr's current models on sale are developed based on the CHN platform, which, jointly developed by Changan Auto, Huawei, and CATL, is exclusive to Avatr. Reports showed that Avatr's spokesperson stated that due to Avatr’s group strategy and product planning, it cannot disclose specific information, but it will certainly continue cooperating with Huawei.

In November, Avatr launched the extended-range version of Avatr 12 in Chongqing. (Photo/Avatr)

In fact, Avatr and Huawei recently signed a cooperation agreement in Shenzhen. The agreement aims to enhance their collaboration mechanisms in areas such as product development, marketing, and ecosystem services and elevate their partnership to a new stage with a new model.

In August, Avatr acquired a 10% stake in Yinwang Intelligent Technology Co., Ltd., Huawei's Car BU, with a transaction amount of 11.5 billion yuan, becoming a shareholder. According to reports, Avatr plans to complete the full investment payment for Yinwang by the H1 of 2025, further consolidating the partnership between the two companies.