Self-Driving Firm Momenta Seeks Funding at $5 Billion-Plus Value

(Bloomberg) -- Autonomous driving startup Momenta is seeking to raise new funding at a valuation well above $5 billion, representing a major jump in the value of the Chinese partner to Uber Technologies Inc.

The Beijing company, backed by Temasek Holdings Pte, Tencent Holdings Ltd. and Jack Ma’s Yunfeng Capital, is working with advisers to gauge interest from potential investors, people familiar with the matter said. Its initial goal is several hundred million dollars, though the final amount could rise depending on that process, the people said, asking not to be identified because the deliberations are private.

If it goes ahead, the financing could help propel the fledgling firm toward an eventual initial public offering. Founded in 2016, Momenta sells advanced driver assistance to automakers and powers robotaxis in cities from Shanghai to Munich. It counts SAIC Motor Corp., General Motors Co. and Toyota Motor Corp. among its backers and clients. Momenta filed confidentially for a US IPO last year, though progress on that deal hinges on market conditions.

When asked for comment on the new funding round, a Momenta spokesperson said the financial details were incorrect, without elaborating. “The figures and progress reported are inaccurate, but it is not convenient to disclose the exact details at this time.”

Chinese robotaxi companies like Baidu Inc.’s Apollo Go, WeRide Inc. and Pony AI Inc. need capital to push into international markets spanning the Middle East, Europe and Southeast Asia.

Rather than operating vehicles themselves, these firms prefer to provide the underlying technology and partner with carmakers and ride-hailing platforms such as Uber and Grab Holdings Ltd. to deploy their fleets.

Pony AI and WeRide went public in the US last year. Their debuts fueled hopes for a revival of Chinese tech listings, even as autonomous driving remains a flashpoint in the rivalry between the world’s two biggest economies.

Founder and Chief Executive Officer Cao Xudong worked as a researcher for Microsoft Corp. in Beijing and then SenseTime Group Inc. before starting his own company, according to his LinkedIn page. He graduated from Tsinghua University with a bachelor’s degree in engineering mechanics.

--With assistance from Lulu Yilun Chen, Echo Wong and Linda Lew.

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