July 13, the globally leading new luxury pure electric vehicle technology brand, Smart, announced the initiation of Series A financing plan, aiming to raise USD 250 million to USD 300 million from the capital market. The lithium battery industry giant, Tianqi Lithium（天齐锂业）, will lead this round of financing by investing USD 150 million. The funding is expected to raise Smart's valuation to CNY 40 billion.
Established in 2019, Smart is currently jointly owned by Mercedes-Benz Group AG and Geely（吉利）. Its first domestically produced pure electric vehicle, Smart Elf #1, was officially launched in 2022. As of the first half of 2023, Smart has delivered 23,540 new cars in the Chinese market and has been listed and delivering in Germany and France. Additionally, Smart Elf #3 was launched in the domestic market on June 1, 2023, with plans to enter the European market at the beginning of 2024.
However, Smart has not yet achieved profitability. According to the company's financial data, its revenue in 2022 was CNY 1.856 billion, with a net loss of CNY 1.46 billion. In the first half of 2023, the net loss was CNY 661 million. Despite facing adverse financial conditions, Smart transformed from a Sino-foreign joint venture into a foreign-invested, non-sole proprietorship enterprise at the end of June this year, sparking speculation that Smart may be planning an IPO in Singapore.
According to the International Energy Agency's "2023 Global EV Outlook," the global electric vehicle sales, including pure electric and plug-in hybrid vehicles, exceeded 10 million units last year, marking a 55% growth compared to 2021. Globally, the number of electric vehicles on the road surpassed 26 million by the end of 2022, representing a 60% increase from 2021. It is predicted that the global electric vehicle sales will reach nearly 14 million units by 2023.
EqualOcean has learned that China's new energy vehicle market is also showing strong growth. In 2022, China accounted for 60% of global electric vehicle sales. According to data from China Passenger Car Association（乘用车市场信息联席会） of China's Automotive Market, China's new energy vehicle sales reached 6.5 million units in 2022, with a staggering growth rate of 94%. The market share of pure electric vehicles continues to rise, making it the mainstream product in China's new energy vehicle market.
It is worth noting that in the media briefing announcing the financing plan, Smart not only clarified its intention to accelerate the global development of the brand but also emphasized the continued joint ownership of Smart by its current shareholders, Mercedes-Benz Group AG and Geely. After the completion of this round of financing, both parties will still co-control Smart with equal shares.