(Yicai Global) Sept. 11 -- New energy vehicle startup WM Motor Technology has gained another powerful supporter in its quest to become a major player in China's crowded electric car space, according to a media report.

Shanghai Automotive Industry, the parent company of state-owned SAIC Motor, has invested CNY500 million (USD73.1 million) in WM Motor, the Paper reported today.

The NEV maker is mulling an initial public offering as soon as this year on Shanghai’s year-old Nasdaq-style Star Market, Bloomberg News reported on July 24, citing people familiar with the matter. The Shanghai-based firm would aim for a valuation of more than CNY30 billion (USD4.39 billion), it added.

Three compatriot rivals have recently wrapped up their New York IPOs. The first, Tencent Holdings-backed Nio, raised USD1 billion last September and said on Aug. 31 that it will issue more shares on the New York Stock Exchange to garner a further USD1.7 billion.

Li Auto, which has Meituan Dianping at its back, raised USD1.1 billion via a Nasdaq listing in late July, while Alibaba-backed Xpeng Motors bagged USD1.5 billion via an NYSE offering last month.

WM Motor netted CNY3 billion (USD438.7 million) in a Series C round of funding in March 2019, led by tech titan Baidu. The automaker, which cooperates with foreign chipmakers Qualcomm and Infineon Technologies, had delivered 30,000 vehicles over the two years ended in early July. 

Editor: Emmi Laine