(Yicai Global) April 27 -- Ruqi Mobility, the ride-hailing platform under Chinese auto giant GAC Group, has banked more than CNY1 billion (USD152.5 million) in new funding, the first in China’s smart transportation sector this year, with the aim of building robotaxi fleet.

The series A fundraiser was led by GAC, the Guangzhou-based startup said in a statement released on its website yesterday. Self-riving technology companies Pony.ai and WeRide and investors including Japan’s Sparx Group also took part.

The proceeds will be used to build a robotaxi fleet of over 200 self-driving vehicles, expected to enter demo operation within the year, and a vehicle-to-everything system-powered fleet of more than 1,000 cars, Ruqi said. Some of the money will also go to improving its self-driving system.

“In the past, the autonomous driving industry focused on improving the system algorithm ability and vehicle hardware level, but with the development of technology, it gradually shifted to autonomous driving operation technology,” Chief Executive Jiang Hua said. 

“To become a service, robotaxi must operate through a mobility platform,” he said. “For this reason, two of the world’s leading automatic driving technology firms invested in Ruqi.”

Ruqi Mobility was founded in June 2019 with an initial investment of CNY1 billion. GAC contributed 35 percent, Chinese internet giant Tencent Holdings 25 percent, and state-owned firm Guangzhou Public Transportation Group another 10 percent.

The company started operating in cities in Guangdong province, such as Guangzhou, Shenzhen, and Zhuhai, and has about 15 million users. Its platform’s first physical vehicle service store also opened in Guangzhou and will follow the automated car maintenance scheme.

Ruqi Mobility plans to start the paperwork for an initial public offering next year, GAC Chairman Zeng Qinghong said last month, adding that WeRide, also based in Guangzhou, had invested USD15 million.

Editors: Dou Shicong, Futura Costaglione