China’s driverless car startup WeRide secures $120M in IPO, adds $320.5M through private placement

China’s self-driving startup WeRide has raised $440.5 million through its U.S. IPO and a private placement on Friday, marking a promising sign as more Chinese companies head to U.S. markets. The IPO reflects positive investor interest and a shift toward easing some regulatory hurdles.

The funding news follows WeRide’s recent global expansion announcement, driven by advancements in AI that are reshaping transportation.

The Guangzhou-based company, specializing in L4 autonomous driving, priced 7.74 million American depositary shares at $15.50 each, raising about $120 million and pushing its valuation above $4 billion.

An additional $320.5 million was secured through a concurrent private placement, with the potential for total proceeds to reach $458.5 million if underwriters buy more shares. WeRide will begin trading on Nasdaq later today, Reuters reported.

In recent years, fewer Chinese companies pursued U.S. IPOs after Didi Global’s delisting, triggered by Chinese regulatory concerns. However, Beijing’s recent policy adjustments and an agreement last year that resolved a U.S.-China audit dispute have encouraged renewed interest in U.S. listings among Chinese firms.

The IPO surge isn’t limited to WeRide; other tech companies are catching investors’ attention again as the market bounces back from a period of caution over cash-burn issues and high valuations.

Robotaxi Roadblocks

Launching a robotaxi network remains challenging due to stringent safety and reliability standards. China has been more flexible than the U.S. in green-lighting trials, though incidents involving autonomous vehicles and the technology’s current limits in handling tough conditions—like bad weather or complex intersections—pose real obstacles.

Meanwhile, a proposed rule by the Biden administration could ban Chinese tech in connected and autonomous vehicles on U.S. roads over national security concerns. Still, companies hope the autonomous sector’s progress will lead to a new era in urban mobility. Tesla also recently showcased a robotaxi model, joining others like WeRide in pushing for change.

WeRide’s listing follows EV maker Zeekr’s debut on the NYSE earlier this year, the first successful U.S. offering from a Chinese firm since Didi’s delisting. Another self-driving startup, Pony AI, backed by Toyota, recently filed for a Nasdaq listing as well.

Founded in 2017 by Qing Lu, Tony Han, and Yan Li, WeRide stands out as China’s first L4 autonomous driving startup with backing from the Renault-Nissan-Mitsubishi alliance and GAC Group. Its team of over 200 includes seasoned R&D engineers and leaders from tech giants like Google, Facebook, Microsoft, and Baidu, bringing a deep pool of experience to WeRide’s technology and business strategy.

Currently, WeRide’s advanced self-driving systems can operate independently, though a safety driver is still onboard as a precaution.

Before its IPO, WeRide raised approximately $1.442 billion in funding across 11 rounds, backed by 41 investors, including notable names like The Carlyle Group and Idinvest Partners.

WeRide