China’s autonomous driving industry is experiencing a slowdown in investment, but Haomo.ai, a startup backed by Chinese automaker Great Wall Motor, has secured $14 million in a fresh round of funding. This investment marks the first tranche of the company’s Series B funding and was led by Chengdu Wufa Private Equity Fund Management, an investment vehicle backed by the government of Chengdu.
Key Takeaway
Haomo.ai, backed by Chinese automaker Great Wall Motor, secures
4 million in funding for its autonomous driving technology, marking the first tranche of its Series B funding. The company focuses on developing advanced driver assistance systems and self-driving solutions, with a competitive edge stemming from its partnership with Great Wall and involvement in technological showcases.
Domestic Investors Step In
As foreign venture capital firms retreat from China, domestic investors, particularly those with local government funding, have stepped up to support the country’s emerging tech companies. Haomo, a four-year-old company, has raised over $200 million worth of equity funding, denominated in Chinese yuan. Previous investors include Chinese food delivery giant Meituan and Qualcomm Ventures, the corporate venture arm of Qualcomm.
Focus on Advanced Driver Assistance Systems
Haomo, led by CEO Gu Weihao, a Baidu smart car veteran, focuses on developing Level 2 advanced driver assistance systems for passenger cars, primarily selling to its largest shareholder Great Wall. It also provides Level 4 self-driving solutions to logistics vehicles, with clients including Meituan, Alibaba, and JD.com.
Partnership with Chengdu and Technological Showcase
The investment from Chengdu ties Haomo to an agreement to develop robotics for Wuhou, a central district of the city. Haomo’s cleaning and security inspection robots will serve as the centerpiece of the district’s technological showcase. This partnership aligns with the trend of local governments in China competing to become national “demo zones” for cutting-edge technologies through the help of private tech firms.
ADAS Solutions and Competition
Haomo’s ADAS solutions, which include features like automatic braking and lane changing, have powered more than 20 vehicle models and amassed some 120 million kilometers of driving. The company’s self-driving delivery vans have ferried close to 300,000 grocery parcels for supermarkets in Beijing. Haomo competes with other Chinese AV upstarts, such as Pony.ai, WeRide, Momenta, and Deeproute, which have also raised significant funding from Western VCs.
Great Wall’s Involvement and Competitive Edge
Haomo’s advantage lies in Great Wall’s involvement, providing the company with the revenues needed to fund expensive R&D without limiting itself to just selling to one customer. Haomo supplies its ADAS to three other OEMs, according to a company spokesperson, declining to name them.
