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China Electric Car Startup Nio Raises Over $1 Billion From Tencent, Others: Sources

  • HONG KONG — Chinese electric vehicle startup Nio has raised more than $1 billion in its latest fundraising round, led by existing investor Tencent Holdings Ltd, valuing the firm at about $5 billion, two people with knowledge of the matter said.
  • New investors in the round include U.S. hedge fund Lone Pine Capital, Chinese investment firm CITIC Capital and Scottish fund manager Baillie Gifford, said one of the people.
  • The fundraising comes as Beijing has been promoting electric vehicles in its battle with urban smog, with startups flooding the market after it opened up the sector to investment from technology firms and other backers outside the industry.
  • It marks a hectic news week for Tencent, Asia’s second-most valuable company with a market capitalization of around $475 billion.
  • A day earlier, Tencent’s e-book unit China Literature Ltd saw its shares surge more than 80 percent in their debut.

Chinese electric vehicle startup Nio has raised more than $1 billion in its latest fundraising round, led by existing investor Tencent Holdings Ltd, valuing the firm at about $5 billion, two people with knowledge of the matter said.

HONG KONG — Chinese electric vehicle startup Nio has raised more than $1 billion in its latest fundraising round, led by existing investor Tencent Holdings Ltd, valuing the firm at about $5 billion, two people with knowledge of the matter said.

New investors in the round include U.S. hedge fund Lone Pine Capital, Chinese investment firm CITIC Capital and Scottish fund manager Baillie Gifford, said one of the people.

The fundraising comes as Beijing has been promoting electric vehicles in its battle with urban smog, with startups flooding the market after it opened up the sector to investment from technology firms and other backers outside the industry.

It marks a hectic news week for Tencent, Asia’s second-most valuable company with a market capitalization of around $475 billion.

Snap Inc said on Wednesday that Tencent had taken a 12 percent stake in the messaging app. A day earlier, Tencent’s e-book unit China Literature Ltd saw its shares surge more than 80 percent in their debut.

Tencent, CITIC Capital and Baillie Gifford didn’t immediately respond to requests for comment on the Nio fundraising. Nio declined to comment. Lone Pine Capital was not immediately available for comment outside of normal business hours.

The sources declined to be named as the financing plans were not public.

Shanghai-based Nio, founded by Chinese internet entrepreneur William Li in 2014, has already attracted big-name investors, counting Tencent as its main backer alongside investment…

China Electric Car Startup Nio Raises Over $1 Billion From Tencent, Others: Sources