Farizon, a hybrid and electric truck maker owned by China’s Geely, has capped a $600 million Series A raise, the company said in a statement. The Hangzhou-based company plans to use the funds to expand its operations outside of China.
The main focus for Farizon’s expansion is Europe, where the automaker plans to start selling a light electric cargo van called the Super Van in early 2024. Farizon hopes the Super Van will become one of the top three e-cargo vans in Europe.
Recently, California-based Rivian began delivering its first e-cargo vans for Amazon in Europe. Rivian hopes to continue to build its existence in the region. Both newcomers have to compete with the Ford e-Transit van.
Farizon also hopes to have a presence in Asia-Pacific, South America and the Middle East. Many Chinese EV makers started pursuing strategies in the Middle East after being unable to meaningfully compete in Europe with Western brands.
For now, the majority of Farizon’s sales come from China. The company sold around 37,800 light commercial vehicles in China in 2022, according to consulting group LMC Automotive. Between January and May 2023, Farizon sold 24,760 vehicles. Until the end of the year, Farizon hopes to reach 150,000 units sold. The company said Thursday that it has produced just that many commercial vehicles.
In addition to expansion, Farizon said it would use the Series A funds for further technology and product development.
The funding round comes nine months after Farizon raised a $300 million pre-Series A round. Private equity firm Boyu Capital and state-owned Yuexiu Industry Fund lead the Series A, with participation from United Clean Energy, Linjiang Industry Group and previous investors Hidden Hill Capital and Industry Foundation for Xiangtan.