(Yicai Global) Nov. 1 – Mgeek, a Beijing-based provider of wireless charging products and solutions owned by Fashion-Wire Technology Co., has obtained approximately CNY10 million (USD1.5 million) via series-A financing. The company will invest most of the funds in front-end automobile businesses, it said.
The lead investor of this funding round was Changzhou Tenglong Auto Parts Co. [SHA:603158], a leading company in auto parts development, manufacturing and marketing.
Mgeek's existing business lines include consumer wireless charger development and sales, and business end industrial wireless charging solutions. The technology barrier for the consumer wireless charging market is relatively low, and the firm's development has been affected by onslaughts from low-price wireless charging products. The business end wireless charging solution business has also proved unsustainable due to absence of a set of universally recognized service standards.
Through market research, Mgeek found that wireless charging device pre-installation has become increasingly in demand on the front-end auto market, and a growing number of leading automakers started to integrate wireless charging systems into their products since late 2013. Pre-installed wireless charging capability is now common in the latest models of top auto brands. The tech startup plans to develop the front-end market first, and use the experience gained to boost business development in other industrial market segments.
More than 28 million cars were produced and sold in China last year. If the penetration of front-end wireless charging products can reach 80 percent, it will create a new market worth billions of yuan. Furthermore, the more demanding technical barriers of the automotive wireless charging market means that only qualified companies can enter the market, and vicious price wars can be avoided.