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The
Japanese trading house, which owned around 1% of Singulato last
year, could pump an additional "few hundreds of millions of
dollars" into Singulato to become its No. 2 shareholder, one of
the people said.
But that plan is dependent on Singulato speeding up development
of its first model, a fully electric sport-utility vehicle
called the iS6, and making proper preparations for an IPO, the
person added.
The iS6 had been slated for a launch earlier this year but has
faced some delays, the source said without elaborating.
The investment is a shot in the arm for Singulato. While it is
valued at $3.5 billion according to China's science ministry and
is one of the more high-profile EV startups in the world's
biggest auto market, Singulato is like many of its peers facing
a much tougher funding environment.
Not only have investors been put off by setbacks to
profitability for Tesla Inc as well as sliding sales at fellow
Chinese EV startup Nio Inc, the sector is also grappling with
government cuts to subsidies and plans to phase subsidies out
altogether.
Sales of so-called new energy vehicles in China, which includes
electric vehicles, contracted for a second straight month in
August, due to the cuts to subsidies.
A Tokyo-based Itochu spokesman said the trading house had
recently made an additional investment in Singulato, but
declined to specify the amount except to say it was a minor
investment.
Asked if Itochu has conditionally agreed to further hike its
investment, he said there were no such plans and declined to
comment further.
Singulato's biggest shareholder is Shen Haiyin, its co-founder
and chief executive, with a stake of about 29%. Its current No.
2 shareholder with 16% is a company that holds shares for
Singulato employees.
Itochu said this year it had formed a partnership with New
York-based ridesharing company Via Transportation Inc.
The two people familiar with the matter said Itochu and
Singulato might cooperate in China to offer mobility services
which may include Via.
The deal with Itochu follows an agreement in April for Singulato
to purchase electric car technology from Toyota Motor Corp - one
that allows Singulato to accelerate development of a planned
mini EV, a second vehicle for the startup.
(Reporting by Norihiko Shirouzu; Editing by Edwina Gibbs)
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