Briefing: Meituan CEO reportedly investing $300 million into EV firm

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王兴欲向理想汽车投资3亿美元 – LatePost

What happened: Meituan’s billionaire co-founder and CEO Wang Xing is planning to invest $300 million in Chinese electric vehicle (EV) maker Chehejia, also known as CHJ. The company is known for its smart electric car brand Leading Ideal. Wang will lead Chehejia’s more than $500 million round which values the company at nearly $2.9 billion. Company founder Li Xiang will contribute around $100 million and existing investors including Matrix Partners, Shougang Fund, and Bluerun Ventures will also participate in the round. A Meituan spokesman declined to comment when contacted by TechNode on Monday.

Why it’s important: News of a potential entry by mega-app Meituan into another hot and capital-fueled industry was a popular topic on Monday, first reported by respected former Caixin reporter Song Wei on her self-published news account on WeChat. Founded in July 2015 as one of the many startups joining China’s EV boom, Chehejia has received lots of industry attention thanks to its legendary founder Li Xiang, a seasoned entrepreneur who has two successful startups, Pcpop.com, and US-listed auto site Autohome.com. Li also co-founded NextEV, the electric car maker looking to take on Tesla. China’s electric car makers are now facing a critical maturity period with more pressure to mass produce and a reduction in government subsidies.