New Delhi:- Farizon, a Chinese hybrid and electric truck maker owned by Geely Group, has closed a $600 million Series A financing, the company said in a statement. The Hangzhou-based company plans to use the funds to expand its business outside of China.
Farizon's expansion focus is on Europe, where the automaker plans to start selling a small electric van called the Supervan as early as 2024. Farizon hopes Supervan will become one of the top three electric vans in Europe.
California-based Rivian recently began shipping its first electric vans to Amazon in Europe. Rivian hopes to further expand its presence in the region. Both newcomers have to compete with Ford's e-transit van.
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Farizon also wants to establish a presence in Asia Pacific, South America and the Middle East. Many Chinese electric car makers are pursuing strategies in the Middle East after being unable to seriously compete with Western brands in Europe.
Most of Farizon's sales now come from China. In 2022, the company sold about 37,800 light commercial vehicles in China, according to consulting group LMC Automotive. From January to May 2023, Farizon sold 24,760 vehicles. Farizon aims to sell 150,000 units by the end of the year. The company announced Thursday that it is already producing a significant number of commercial vehicles.
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In addition to business expansion, Farizon also plans to use the Series A funding to advance technology and product development.
The funding round comes nine months after Farizon raised a $300 million pre-series A round. Private equity firm Boyu Capital and state-owned Yuexiu Industrial Fund led the Series A, with participation from United Clean Energy, Linjiang Industry Group and previous investors Hidden Hill Capital and Industry Foundation for Xiangtan.
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The Electric truck manufacturer Farizon has finally closed the amount raised for the Series A at a whopping $600 Million and has said to use that money for the purpose of expansion out of China.