Chinese automaker Geely raises more than $300 million for Farizon, a new energy brand.

© Stocksak. FILEPHOTO: The Geely logo at a Shanghai, China car dealership August 17, 2021. REUTERS/Aly Song

BEIJING/HONG KONG – Geely, a Chinese automaker, announced Wednesday that its Farizon brand has raised more than $300 million through a funding round led By Hidden Hill Capital, an Asian logistics company.

Geely increased its energy vehicle development and this new capital raise was supported by other investors like Transfar, a Chinese logistics and chemical group, and an investment company backed by CITIC securities, a major Chinese investment bank.

Hangzhou-based Geely Holding Group is the owner of Zhejiang Geely New Energy Commercial Vehicle Group NASDAQ:. Farizon is sold by Zhejiang Geely. It is also known for its investments in Volvo Cars & Mercedes-Benz. Geely Holdings’ listed subsidiary Geely Automobile Holdings Ltd (OTC:) Ltd stated it aims at increasing the percentage of electric vehicles in its total sales up to 50% by 2023.

Farizon will use much of the funding “for research & development and ecosystem development, in order to further consolidate its market-leading position in new energy commercial vehicles,” Zhejiang Geely New Energy Commercial Vehicle Group said in a statement.

Geely New Energy Commercial Vehicle didn’t disclose Farizon’s valuation in the statement.

According to the statement, the Capital Raising was also carried out by the Industry Foundation of the Chinese City of Xiangtan, in the south province of Hunan.

Hidden Hill Capital will work with Farizon to promote sales and rental of urban logistics vehicles in China and market refrigerated cars. Hidden Hill Capital also has over 400 warehouses and logistics facilities in China.

Zeekr, a brand new electric vehicle brand that Geely Holding Group backs, raised $500 million last year in its first external funding. Investors included Intel (NASDAQ) Capital, battery maker CATL, and online entertainment company Bilibili (NASDAQ).

(This story has now been corrected to reflect the new company name to GLP in the lead paragraph.

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