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Li Auto chip unit signs first funding deal at up to $2.5 billion post-money valuation

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Li Auto chip unit signs first funding deal at up to $2.5 billion post-money valuation

Li Auto (NASDAQ: LI) has signed agreements for the first equity funding round of its Mach chip business, bringing in outside capital to support research and development, commercialization and expansion beyond the automotive market.

The company announced the financing on Friday, with an agreed investment of 1.625 billion yuan ($242 million) and a post-money valuation of 17.1 billion yuan ($2.5 billion) if the additional subscription right is fully exercised.

The financing is for Shanghai Mahe Xin Technology Co Ltd (MHX Technology). Li Auto will invest 1 billion yuan through a wholly owned subsidiary, while external investors will contribute a combined 625 million yuan.

The round is led by Hangzhou Jingtao, Lanchi Ventures and Huaye Tiancheng, with participation from MiraclePlus.

Hangzhou Jingtao and its affiliated funds have also been granted an additional subscription right of up to 500 million yuan. Full exercise of that right would bring the total investment to 2.125 billion yuan.

The additional subscription right can be exercised on a one-time basis on or before December 31, 2026, at the same price per unit of increased registered capital as the initial financing, according to the announcement.

The 17.1 billion yuan post-money valuation is conditional on full exercise of the additional subscription right. Completion of the financing remains subject to customary closing conditions.

LatePost reported on September 21 that Li Auto's chip business was pursuing its first external funding round at a pre-money valuation of about 15 billion yuan. The latest announcement formally confirms the financing arrangements and discloses the valuation following the additional investment.


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