(Yicai) Aug. 31 -- Avatr Technology, the premier smart electric vehicle brand under Chinese carmaker Changan Automobile, has secured CNY3 billion (USD411.5 million) from its latest fundraiser, bringing its post-money valuation to nearly CNY20 billion (USD2.7 billion).

The proceeds of the Series B round will be used to accelerate research, development, design, production line inputs, brand development, and channel building, the Chongqing-based carmaker, which is backed by Changan Auto and Huawei Technologies, said yesterday.

The fundraiser brought in three new investors: Chongqing Industrial Investment Fund, Bank of Communication Financial Assets Investment, and Guangzhou Development District Holding Group. Previous investors Changan Auto, China South Industry Assets Management, and Chongqing Liangjiang Equity Investment Fund Management added more funds.

Changan Auto invested CNY1.2 billion in the latest round, keeping its stake in Avatr at 41 percent, it said in an earnings report released yesterday.

Avatr became the second Chinese EV startup to complete a fundraiser this week after Hozon New Energy Automobile, also known as Neta Auto, said it secured CNY7 billion in pre-initial public offering funding on Aug. 29.

Founded in 2018, Avatr develops vehicles based on the CHN architecture, a smart platform co-developed by Changan Auto, Huawei, and battery giant Contemporary Amperex Technology. 

Avatr's loss narrowed 67 percent in the first quarter. The net loss was CNY662 million (USD90.8 million) in the three months ended March 31, versus CNY2 billion a year ago, according to Changan Auto. Revenue soared to CNY1.1 billion from CNY28.3 million (USD3.9 million), with total assets of CNY8.8 billion and net assets of CNY2.1 billion.

Avatr has only one model on sale, the Avatr 11, with total deliveries exceeding 12,000 units, including 1,786 in July. Its second model, the Avatr 12, is scheduled for a global debut in Munich on Sept. 4, with IAA Mobility 2023 opening in the German city the day after.

Editor: Martin Kadiev