Zongmu, a Chinese self-driving vehicle system developer, has raised 190 million US dollars in a Series D funding round, which included an investment from the Xiaomi-backed Fund.
According to a report by CaixinGlobal, Zongmu completed the funding in three stages, with the final round headed by the Hubei Xiaomi Yangtze River Industrial Fund, a Chinese smartphone maker's investment fund. The information comes from a statement released earlier this week by the automobile system developer. In addition to Denso, Jadex Capital, Cowin Capital, Qualcomm Ventures, and Fosun Capital, this investment round comprised Denso, Jadex Capital, Cowin Capital, Qualcomm Ventures, and Fosun Capital.
The substantial investment in the firm reflects increased investor interest in an industry that has been presenting market opportunities. According to the announcement, this money will also allow Zongmu to collaborate with Xiaomi to investigate the applications of its autonomous driving technology. Surprisingly, the announcement comes just months after the smartphone maker declared its intention to enter the smart car sector, announcing its plans in March 2021.
This would boost the company in the presence of other tech conglomerates like Baidu and Huawei, which have recently expressed interest in the smart car sector. For those unfamiliar, Zongmu was created in 2013 with the goal of developing autonomous driving and enhanced driver support technology, as well as location and mapping goods. The company is also recognised for its automated valet parking technology, which is featured in a China FAW Group SUV model.