Alibaba-Backed EV Maker IM Motors Weighs Raising Fresh Funds, Sources Say

IM Motors, a Chinese premium electric-vehicle maker backed by Alibaba Group Holding Ltd. and SAIC Motor Corp., is considering raising new funds to help finance expansion plans, according to people familiar with the matter.

(Bloomberg) — IM Motors, a Chinese premium electric-vehicle maker backed by Alibaba Group Holding Ltd. and SAIC Motor Corp., is considering raising new funds to help finance expansion plans, according to people familiar with the matter.

The Shanghai-based company is working with advisers including China International Capital Corp. as it seeks to raise about 6 billion yuan ($828 million), the people said, asking not to be identified because the matter is private.

Considerations are preliminary and details such as the size of the deal could still change, the people said. Representatives for IM Motors, known as Zhiji Motors in Chinese, and SAIC didn’t immediately respond to requests for comment, while CICC declined to comment.

IM Motors was founded in 2020 with total investment of 10 billion yuan from SAIC Motor, Alibaba and Shanghai’s Pudong District, a press release shows. It started mass production of its first model, the IM L7, in early 2022, according to a different press release.

Last year, the company completed a series A equity financing round led by investors including Bank of Communications Capital Management Co., an investment arm of Industrial and Commercial Bank of China Ltd. and China’s National Green Development Fund, according to a statement at the time. The fundraise helped propel its valuation to nearly 30 billion yuan, while the amount raised wasn’t disclosed.

The carmaker has signed up to be the first auto brand to implement AliOS, an operating system for vehicles powered by Alibaba’s Tongyi Qianwen AI model, when it’s ready.

–With assistance from Linda Lew.

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