Chinese driverless firm Momenta valued at $6 billion in funding round

Chinese autonomous driving startup Momenta is seeking to raise a new funding round that could value the company at approximately $6 billion, according to sources familiar with the discussions. The valuation, however, remains subject to change as the funding round progresses, one source noted, speaking on condition of anonymity due to the sensitivity of the matter.

Momenta declined to comment on the funding reports.

The Beijing-based firm specializes in developing advanced driver-assistance systems (ADAS) and autonomous driving software solutions for automakers. Its technology aims to enable vehicles to perform functions such as lane changes and highway navigation with minimal human intervention.

The company’s recent partnership with Mercedes-Benz marks a significant milestone. The deal will see Momenta’s technology integrated into Mercedes-Benz’s next-generation electric CLA models in China, powering the automaker’s driver-assistance systems across various driving scenarios, including highways, urban streets, and parking maneuvers, according to a joint statement released Thursday. Sources indicate that Momenta’s technology could potentially be deployed across as many as 40 Mercedes-Benz models in the future, demonstrating the depth of the collaboration.

This follows a similar agreement with BMW in June, where Momenta’s technology will be featured in BMW’s Neue Klasse electric vehicles in China. These partnerships highlight Momenta’s increasing traction within the automotive industry and its ability to secure deals with major international players.

Momenta boasts a strong investor base, including prominent names such as Tencent, Temasek, SAIC Motor, Toyota and Mercedes-Benz. This diverse backing provides the company with both capital and strategic partnerships that are vital for navigating the complex and competitive landscape of the autonomous driving sector.

The autonomous driving market is intensely competitive, with major players like Nvidia and Horizon Robotics vying for market share in China. Moreover, firms like WeRide and Pony.ai are also making significant strides in the autonomous driving software space. Momenta differentiates itself through its “data-driven” approach to autonomous driving, leveraging vast amounts of real-world driving data to continuously refine its algorithms and software. This approach allows for rapid iteration and improvement, potentially giving Momenta an edge in achieving higher levels of autonomous driving capabilities.

As Momenta gains momentum through key partnerships and technological advancements, speculation mounts regarding its potential initial public offering (IPO). The company is reportedly considering listing in Hong Kong, amid growing uncertainty surrounding U.S. listings for Chinese companies. A successful IPO would provide Momenta with further capital to fuel its research and development efforts, expand its strategic partnerships, and solidify its position in the rapidly evolving autonomous driving market.